Quote:
Originally Posted by highnote
Another factor I use from Martin Zweig is called "Installment Debt Non-Seasonally Adjusted".
You buy when it is falling and drops below 9%.
You sell when it is rising and exceeds 9%.
It jumped from 7% to 12% last November. That might have been a foreshadowing of what was ahead.
With the rate hikes it is now getting more expensive to service the debt. Think about all the people who have adjustable rate mortgages. Their mortgage payments are increasing.
Some people may need to sell stocks in order to have cash to pay bills. Or they are just taking some profits and will use it to pay down debt.
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The massive amount of 'bad' debt is beyond comprehension. Bad in the sense it will never get paid. It's really hard to get a handle on how much there is, since the mark-to-market rules are so lax.
Wow. Quite the pop to 2680, but already 20 points off that. Dollar is up sharply, so wouldn't be too surprised to see the S&P settle back near 2620. But I ain't tradin' that. So thin right now.
Looks like it'll be jumpy for a while yet.