Salient to Investors:

  • JC O’Hara at FBN Securities said the spread between the Russell and S&P 500 is widening again and worrying traders who want to see small caps participate.”
  • Jonathan Krinsky at MKM Partners sees a good chance of US equities declining modestly into early October, citing deteriorating breadth and seasonal weakness. MKM said that when the Russell 3000 Index touched a intraday record on September 19, less than 55% of its stocks were above their 200-day moving average, and the last time that happened was on March 24, 2000 at the end of the dom-com bubble.
  • Donald Selkin at National Securities said people are looking for an excuse to knock the market back down a little bit.
  • William Dudley at FRB New York said the Fed is on the lookout for signs of asset-price bubbles, and financial stability is a necessary condition for effective monetary policy.
  • Julian Robertson at Tiger Mgmt said bonds are at ridiculous levels and their bubble will end very badly – governments worldwide are buying bonds to keep their countries growing.

Read the full article at  http://www.bloomberg.com/news/2014-09-22/u-s-stock-index-futures-fall-as-china-damps-policy-bets.html

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