Wednesday, August 3, 2011
Some warning signs
The approval of raising debt ceiling turned out to be an anti-climax event. Good news turned into a major sell off is not a good sign. Those bet the market will turn favorably got burnt instead. The pundits are betting on a possibility of a recession next year. I am not ready to take any stance on this yet but Dow Jones Transportation broke the support yesterday did raise a little alarm. I was not sure whether this is a genuine signal or just a false alarm. Any way, I think yellow light signal is flashing. It does warrant some cautiousness.