Are We Waiting on “Red?”

Wednesday will be critical as consumer cyclical stocks (especially housing) are under pressure across the markets.

Dear Fellow Expat:

An early signal would be three days of negative movement on the S&P 500 and rising selling patterns.

We’re seeing outflows increase as the Daily MACD is turning negative now. We’re still about 1% above the 20-day moving average, but something is brewing here - and people are starting to wake up to the debt problem (we had this same problem LAST October).

Stocks have threatened their first three-day slide since September as traders have seemingly revolted against Washington's $500 billion borrowing spree over the last three weeks. 

The bond market's message is crystal clear: It is pushing yields toward 4.23% and demanding ever-higher premiums to fund America's debt addiction. 

Gold's defiant surge to $2,763 despite dollar strength tells the tale. With rate cut hopes slashed in half from just a month ago, the market's bull run is slamming into a wall of fiscal reality. 

Insider Buying: 

• Insider Buy/Sell ratio for October is 0.24 (YTD avg 0.28) - that’s bearish.

• Top Purchase…