Economy Not A Reason To Be Bullish

There are reasons to be bullish but the economy is not one of them despite this morning's jobless claims data. There are serious headwinds hitting the economy.
  • The expiration of the housing tax credit.
  • Stricter FHA rules which is now the main lender for the housing market.
  • Municipal austerity measures.
  • Extended unemployment claims running out.
  • Mortgage resets hitting.


Anonymous said...

put/call and when will we be overbought on the 10dma? thx

Tsachy Mishal said...

There is more call buying than the bulls want to see today. Call buying is ok after a period of large negativity but a few more days of this type of call buying should make the bulls nervous. The market will be max overbought right around option expiration.