The question that's haunting me, the question I keep asking myself, is this -- With the Fed manipulating the stock and bond markets, is the stock market still a valid and useful discounter of the future?
The chart below tracks the advance-decline line, which follows the trend of the majority of stocks on the NYSE. The A-D line is currently at a new high. This is strange because the D-J Averages are not at new highs (which is a strange and negative situation).
If there's trouble ahead, then why isn't the stock market giving us warnings? Actually (read yesterday's site) it has.
I've wondered (as usual) what to make of all this. Of course, the situation would be cleared up if both Averages (Industrials and Transports) would rise to new record highs at the close. If just one of the Averages would rise to a new unconfirmed high, we would have ... Log in or subscribe to continue reading.