* The recent post illustrated the deflation topic impacting global stock markets. My work concern is that the overseas weakness may hold upward to a greater extent than subtly impacting U.S.A. stocks. The exceed nautical chart tracks stocks across all exchanges together with the pose out making fresh 3 calendar month novel highs vs. lows. Note that the residual of novel highs vs. lows has been waning since the really goal of October. The bottom nautical chart tracks all NYSE shares closing higher upward their upper Bollinger Bands vs. those closing below their lower bands. This mensurate too has been showing waning upside strength. This invites the hypothesis that the recent marketplace activity represents a topping procedure together with that nosotros could run across a meaningful leg lower equally the resultant of whatever oil/commodity-led capitulation.
* Interesting shipping on why the Fed may hold upward concerned close overseas economical weakness. See too why deflation may hold upward relevant to China together with why “lowflation” is a challenge for Europe.
* Some excellent links from the by week via Abnormal Returns, including the property that best diversifies a stock portfolio.
* Thanks to Steve at SMB for pointing out this good researched majority together with resources on momentum investing.
Have a slap-up get-go to the week!