AM 1150 Kelowna - Radio Rallies & Reversals

Well once again, North American stock indices get hit by a wave of selling in the final hour of trading yesterday. With the exception of the TSX composite index, global stock indices are in official correction territory, and all, including the TSX are below their 200 day moving average, indicating a bearish downtrend. An important technical support level, the Feb. '09 low, was taken out with yesterday's close, with the exception of the TSX composite index. S&P data shows that a 15% correction (and we're not there yet) leads to a bear market 80% of the time.

If there's a silver lining to all this, it's that as investors flee from stocks, and buy government bonds, they're driving interest rates lower. If you're in the market for a mortgage, that's good news. But where there's a yin, there's a yang, and some managers see a bubble developing in bonds.

GB