July 12, 2011

Short-term: 2 yellow, 2 red
Intermediate-term: 1 green, 2 yellow, 1 red

Nothing remarkable. Some deterioration. Gold popped. I think the markets are going to price in resolution of a debt ceiling deal here in the US over the next week or so. It will leave markets vulnerable to either a low-probability of no deal or a “sell on the news” of a deal. In the interim, it is positive for equity markets because the big liquidity pumps that are occurring now are funding the high-frequency quant traders who are responsible for 80% or so of daily trading volume.


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