Justa's Dive Bar

[Ace Hanlon]

I follow credit spreads via the fund AFBIX which I do own. Except for one flat day this fund has risen something like a dozen days in a row. Nothing spectacular --just a slow steady creep higher.

Rising credit spreads indicate that big players are growing more risk-averse. This cannot be anything other than bearish for the stock market.

The stock market can ignore this trend for awhile -- but not for too long.

BTW another thing that greatly concerns me (and you illustrate this as do many others) is that most bulls base their bullishness only on technical analysis, seasonal analysis, and charts. Very hard to make a bullish case using fundamentals of any kind.