The Great Predictor
A blah sort of
day.Â
Unlike a number of days over the past
two weeks, this was a session in which the Naz itself appeared better than its
component parts.
Again, one of the heaviest volume days
ever in the Nasdaq.
This is the type of activity one wants
to see.
And the more of it the better.
A second positive was the action in
the financials.
Nowadays, the financials and the bond
market are the two sole sources of comfort for weary medium-term operators
sitting on a heavy cash position.
A look at Treasurys shows yields
falling for most of the past 11 months.
How did the Treasury market
“know” that a slowdown or recession might be on the horizon?
The newer trader, upon seeing this
sort of anticipatory action happen once or twice, might scoff at the notion that
the market is smarter than anyone.
The newer trader might scoff at the
notion that the market itself is the best forecaster of all.
It is only when one sees the market’s
anticipatory action time and again that one becomes a believer, a convert.
Otherwise, as we know, it’s the unexpected that’s
worth noting.
And beyond the blatant anemia in the
Nasdaq Composite, the fact that the market is unable to mount any sort of rally in
a period of strong seasonal tendencies merely underscores how lame it really is.