1. Technical analysis tells interesting stories, although cause and effect is often confused and, even more often, does not really exist. Yesterday’s DOJI reversal candlestick is one such, here). The other is that September has been the worst for the DOW over the last 50 years (see Bespoke, here), However, September 2010 sparked a slow, steady, relentless bull market rally that I could not comprehend with all the backdrop that is now on the front-burner.
2. Bleak housing market report (here) talks about HELOCs that are not being paid down and how they will affect housing prices in many US cities. Meanwhile, prices in Hong Kong and Sao Paulo keep appreciating at a 20% annual clip!