Posted by: jhamon | October 27, 2009

MysteryHedgie: “If Santy Claus Don’t Call, The Bears Will Be At Broad And Wall”

MysteryHedgie reflects on an emerging, potentially troubling picture…

Connecting the dots between the surprising drop in the US consumer’s confidence (see chart, 47.7 vs. 53.5 expected, troubling as Christmas shopping approaches), the drop in BIDU post earnings, the break of the trendline in the TRAN Index and a bounce in TLT from support (yesterday’s note) is a loss of economic and price momentum, mo that has built steadily since the dark days of March. Oil’s stickiness near $80 makes things worse. In all, it increases the odds of the largest correction since the rally began, with macro (stocks and commodities soft, bonds and US$ rallying) correlating tightly again. Most vulnerable are the biggest winners and most “crowded” positions…NDX, gold, $NZ, FXI, EWZ, XRT. Let’s talk about defense at your convenience….

CCI: "If Santy Claus Don't Come To Call... The Bears Will Be At Broad And Wall"

If Santy Claus Don't Call, The Bears Will Be At Broad And Wall

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