OEX
#11
Posted 08 February 2007 - 05:49 AM
#12
Posted 08 February 2007 - 07:19 AM
BTW, if my theory about the drying liquidity is any correct, this is why we should continue to see the materials and energy stalling from here and a retail euphoria with the lower inflation expectations that wrongly went into the growth for a day or two. If the energy reverses higher from here, especially with a decline in the USD, it will signal more liquidity sloshing around and hence probably more ST bullish for the stocks. I don't think it changes the IT top argument nearby since it is the kind of leadership that marks the tops as well. So, the only way to turn more bullish here is more charge higher by the growth issues and continued strength in the USD...
I agree.. I can also add anemic growth to that contracting liquidity argument