Barney Frank Named Porker of the Year
2. Some good charts and comments about the deficit situation
Visualizing The Abyss: An Itemized Representation Of The (Endless) U.S. Budget Deficit
A terrific chart out of the New York Times, demonstrating succinctly the endless abyss that the actual US budget is becoming (ignore the rosy expectations for a surplus - the likelihood that the US can claw its way back out of the hole at this point are slime to none). The attached article by David Leonhardt, America's Sea of Red Ink Was Years In The Making, is also a great read, and shows just how deep the sovereign debt rabbit hole goes.
I was chatting with a friend over the weekend about various ways to look at overbought oversold conditions.
One of my favorite metrics is to look at a broad set of stocks relative to a moving average. I’ve previously mentioned the percentage of S&P500 stocks trading over their 200 day moving average.
Today, we look at the percentage of stocks on the NYSE trading over their 50 day. You will note that we have not quite reached the levels that the two prior modest corrections hit in June and September.