Market analysis

The overall market bounces up from 10 days fell, it is very possible to form a testing area to see how the policy makers to fight the Euro problem.
But the financial is differentiated from the rest of market, shows no sign of re-bounce and still in the downtrend mood. The fall of financial in past week seems lagging behind the overall market which was the consistent character for the past two years. We would wonder, if the bank system come down to the extremely low level. Or is it lower valued.


The consumer discretionary vs. energy and utility is the wealth distribution among the expenditure and the basic consumption. Obviously, since September 2011, the consumer discretionary consumption is lower comparing to the energy and unitility. This is caused by rising of energy price, and also, due to the reduced buying power since September 2011.

The conclusion is: The overall market will be consolidation for the next few days to check the policy makers’ decision, and the financial market is still in the down trend. The overall wealth redistribution between luxuery and basic material is balanced in the November 2011.

US bond price was keeping rising with 5 years treasury rise slower than the 30 years treasury. The ratio is now at the historical low comparable to Jan 2009. What does this mean?

For the commodity, GS and SLV is rising, and all other commodity is falling. But from the chart, it seems that the fell is after the broke the downtrend, and being part of the consolidation.