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2012/10/18: Weekly Perspective into Equities signaled changing dynamic

October 18, 2012 Leave a comment

© 2012 ROHR International, Inc. All International rights reserved.

The weekly Report & Event Summary Perspective is available through the link in the right hand column. The Technical Projections and Select Comments from last week are also available and still relevant… with the notable exception of the critical equities decision explored in the General Market Observations and EXTENDED TREND IMPLICATIONS below.

This is one of those weeks that saw equities benefit from the combined influence of the now well-established central-bank support along with somewhat better data. As it typically takes a couple of quarters for the central-bank actions to impact the various economies, it leads one to wonder whether the central bank actions were really all that necessary. However, in this case we must allow that the anticipation of worse things to come is enough of a psychological drag to justify at least some of the central-bank largesse. What is most interesting is not that the central bank and supra-national actions have created a ‘risk on’ psychology, but more so how little is being done about the underlying problems which caused the central banks to feel their massive involvement was necessary in the first place.

And those are apparent both in Europe and the US…  

Read more…

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