By Richard Russell
Let’s start with the market. The cash that mutual funds are holding is down in the 3% range. This is extremely low and it shows an incredible amount of bullishness and confidence. There are now 8 distribution days in the Nasdaq and 8 in the S&P. This total of 16 is the highest that I can remember and is indicative of heavy institutional selling. On top of that, margin accounts on the NY stock exchange are near record highs, again showing bullishness and confidence on the part of the investors.
The latest news in the US economy is disappointing and this has resulted in a drop in the dollar index – down 0.15 to 98.51. Based on this news, the Fed will put off raising interest rates untill next year and probably late next year. I doubt if the first boost will be .25%. An anxious fed will raise the rate by one ... Log in or subscribe to continue reading.