Blog Post: Short term indicators are so oversold, dead cat bounce is likely as earnings are released; 20 yr treasuries in daily BWR down-trend=higher interest rates, see chart

GMI1/6
GMI-21/9
T210820%

With bonds in a steep decline, the market will have competition from higher interest rates. This chart shows a daily RWB down-trend. With the GMI=1, I am mainly in cash in my trading accounts. There were only 45 US new highs and 218 lows on Friday. This is not a market for me to buy stocks at highs. But earnings season may cause a short term bounce up with so many indicators oversold. I won’t trust a rise until my indicators strengthen. Too many people I meet have gains from the past two years and remain eternally bullish–until the next large decline scares them out, at the bottom. If T2108, now 20%,  should go below 10% I may become interested in nibbling on an S&P500 index ETF, not in individual stocks, many of which might not recover.

Screenshot

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