Louise Yamada clinched her reputation as America’s oracle of technical analysis with an emphatic sell warning at the top of the Wall Street boom in 2007. She is watching the torrid rise on US and European bourses with mounting unease. Retail investors have not taken part. America’s mutual funds haemorrhaged a further $12.7bn in July, the fifth consecutive monthly outflow. “A lot of this rally is just short-covering by hedge funds. There is underlying weakness creeping into the markets. Volume is low, and going down. You could call it a vacuum rally. New highs against new lows have been deteriorating.” The US index of ... (full story)