Philly Fed Index Plunges

The Philly Fed Manufacturing Index is in free-fall. The Philadelphia Federal Reserve Manufacturing Index rates the relative level of general business conditions in Philadelphia. A level above zero on the Index indicates improving conditions; below indicates worsening conditions. The data is compiled from a survey of about 250 manufacturers in the Philadelphia Federal Reserve district….

Major Bearish Divergence

A significant bearish divergence is forming. It’s time to tighten stops and add to hedges. As the chart below illustrates, the McClellan Oscillator has put in a bearish divergence. The oscillator measures market breadth. Breadth has started to deteriorate despite the indexes pushing higher. Recent divergences have foretold painful downward pressure in stock indexes and…

Credit Crunch-time

The chart below, courtesy of GaveKal Research highlights the dramatic contraction in bank credit and loan availability that has occurred in recent months. Their commentary also succinctly summarizes the current situation… To learn more about how these indicators can help manage risk in your portfolio, book a call with Brad. You may book a call here….