February 2016

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Ray Dalio noticed something about the big three day rally:

The one trait of the market’s biggest winners from that session? “They’re all stocks that have been kicked in the teeth recently,” notes Guenthner. “What we have on our hands is a garbage rally. Heavily shorted losers are getting their day in the sun,” he says. If the market hopes to build on recent gains, some “true market leaders need to emerge to see the rally gain more traction.” The full blog is here.

There’s a cold central-bank wind coming, warns Ray Dalio - MarketWatch

While rising 30%, the rise in ELLI doesn't mean it's qualified as garbage, but nevertheless we think Dalio has a point.