The Shift In Sentiment

Reason to Sell Off Recently

1. President Obama has signaled that a scaled back healthcare bill will be looked into.
2. China posted a quarterly GDP of 10.7% on a year over year basis – This is too “hot” by any measure.
3. The Obama administration is looking to present legislation that will severely reduce proprietary trading at major financial institutions.
4. Initial Claims were 40,000 higher than expected this morning, showing that employment trends are not getting better
5. Japan’s lending by companies has hit mutli-year lows. Business recovery is in jeopardy.
6. Earnings from many companies in the U.S. are meeting and exceeding estimates, while revenues are inline.
7. The Euro continues to lag against the U.S. dollar are a flight to safety continues.
8. Bullish sentiment has been at over-heating levels, usually a contrary indicator.
9. The risk trade has been off for the same time the U.S dollar is moving higher.
10. Australia is talking about taxing some mining companies to bring in additional revenue.