Economic Charts

All economic charts are at the bottom of the page.

Tuesday, September 21, 2010

Yesterday's Confusing Market Action

It would seem that yesterdays rise in the market seems to be perplexing many.  Some believe it was accelerated short covering due to massive short interest.  With the number of retail investors who have withdrawn from the markets (backed by the outflows in mutual funds still occurring in September and largely in August) and the lack of any real great news worth of yesterdays run up, where did this uptick come from?  The interview with the president was not that uplifting and if you listened carefully he said that we have more money going out for programs than coming in.  Well in everybody else's book that means your bankrupt.  More perplexing is data on the Wall Street Journals site (pointed out by the folks at Zero hedge) that shows outflows were greater than inflows, so what pushed the market up.  Here is the data:
I don't know about you, but a negative money flow should have equalled a down market, not an up.  Both total money flows and block trades are in the negative.  This is very perplexing.  I looked back a few days to a down market to verify that this should be the case and sure enough looking at positive days you should see an up day and with negative flows you should see a down day.  So, something seems a miss here.  

No comments:

Post a Comment