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November 30, 2005

A market pro's opinion on today's risks, Wed., Nov. 30, 2005, 1:15 PM

Last evening I received a letter from a securities trading professional. He allowed me to publish it.

Implications of inverted yield curve (Chart of the Day). While we are not quite there yet, a body in motion;

[Earlier illustration removed on account of copyright notice, which I inadvertently missed, and for which I have apologized]

Here is a replacement from Yahoo Finance (but not as helpful as the other one):

079a002.gif


And are participants prepared?

Rydex asset charts. (Rydex is promoted and used by traders and market timers.)

These bulls don't have much ammo left:


080a002.gif


AAII Sentiment, all aboard?


080a003.gif


As everyone appears to be betting that the yield curve either won't invert or it doesn't matter; I think that cash position feels pretty good! Classic, even if the bulls are right, we are out of buyers (limited upside) and if they are wrong; look out below!"

I really enjoy receiving these reports, and I wish I had more time to review them and reproduce them for you.

I'll have to figure out a solution to generate reports that attempt to explain some of the points I make in this blog. We all have limitations to our personal communication abilities. Sometimes, readers understand what I'm trying to say and say it better.

Thank you, John.

Posted by Posted by Bill Cara on November 30, 2005 01:15:52 PM | Category: Cara Today in the Market