Courtesy of Lee Adler of the Wall Street Examiner
I was just in the process of reviewing the monetary data for updating this weekend’s Fed and Treasury Reports and I came across something that could be important. There was a big surge of cash into bank accounts in the week ended 8/1, probably a a result of the runs on European banks and sovereign debt holdings. Under most circumstances these inflows into US bank accounts would be a bullish signal for stocks, but Treasuries have been sucking up all available cash, as while most other asset classes have been starved out. This is a volatile and dangerous situation (for shorts as well as longs) that could reverse at any time, as we have seen in the fits and starts of the past few days.
That’s all I have time for right now. I will have more in this weekend’s Wall Street Examiner Professional Edition.
I am also planning an in depth look at the charts of new and continuing unemployment claims that will attempt to answer the question of whether the trend is as bullish as the headline numbers seem to have indicated this week. I hope to get that to you within a few days.
