8 days ago we were hearing about a big slowdown coming, Europe dissolving, State and municipal bankruptcies etc, etc, etc - now we have had a 7 day rally in the S&P which has tacked on almost 10% in a literal straight line. This is what fund "managers" are getting paid for?? Please - there is no liquidity left in this market - the algo psychos have taken the lifeblood out of the market and NO HUMAN is left to trade - or at least very few. I have been quiet lately as the task of managing a portfolio and running a business and being a Dad has left me with not so much free time. But the action of the past days is so ridiculous that I had to comment. Bear market rallys are vicious - take no prisoners affairs- that is exactly what this has been and may continue to be - honestly how many times do you remember a near 10% move in 7 trading days?? Jim Cramer is very bullish again so we must be getting ready to drop - CNBC continues to pump the market and the "recovery". Recovery??? The jobless ranks are bulging, the period of unemployment is lengthening and corporate America continues to deliver good numbers b/c they are not hiring people. Its an odd moment - something has to give at somepoint - either they start hiring and margins get squeezed or end demand just peters out as high levels of unemployment cannot lead to a buoyant environment. PEs seem to be cheapening up - Id argue that PEs will go sub 8 times for many companies in the not so distant future - Japan the sequel.
I remain very suspect of the US economy and very certain of majorly tuff times in our future. I wish I didnt feel that way but.....so it goes.
Wipeout on TV tonight - good stuff!!!
JB
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