Marc Faber On The Fed Move

As always worth the listening. Click on the Headline to start the Bloomberg Interview

Wie immer hörenswert. Klickt bitte auf die Überschrift um das Bloomberg Interview zu starten.

He also has some insight on market internals

Zudem hat er noch einige Daten zur Markttechnik

Dr Doom: Marc Faber on whether to buy or sell amidst the ‘rot and leverage’

On August 16, 2007, says Faber: “The Dow first sold off more than 300 points, but ended the session basically unchanged. On the same day, we had on the NYSE only 10 stocks hitting 52 weeks new highs, but a staggering 1,045 stocks reaching new lows (which would indicate to me some kind of an intermediate panic low for the stock market).

“Moreover, the US stock market reached strong support around the March 2007 low of 1,363 for the S&P500, which ended the sharp February 25-March 13 correction.”

On August 17, adds Faber, “the S&P500 soared 34 points and the Dow Jones 233 points, as the Fed cut the discount rate. However, new 52-week highs expanded to only 55 and were outpaced by 149 new lows, which is unusual during such a powerful upward move.”

Faber is also “not surprised”, he says, by the strong rally from the August 16 intraday low, “because investors are still conditioned to buy the dips and not to sell into strength”. The fear of ‘missing the next advance’ is negative for the market, from what Faber calls his “contrarian point of view”.