Melt Up ?
Fed Minutes combined with a strong earnings report from Intel and CSX to propel futures higher this morning. US Indices closed marginally higher yesterday, reversing their negative opening after Asia was off 1.5-2%.
This market has had repeated opportunities to roll over, to fall on bad news, to follow other bourses lower, or to take a modest sell off of 0.50-0.75% and turn it into something more dangerous.
In just about every case, Mr. Market has refused to cooperate with the bears.
The bottom line remains: Excessive pessimism, under-invested Main St, a gradually improving economy, backwards looking sentiment, and a flood of liquidity continues to make it challenging to be short this market.
The Fed has made cash trash. Commodities, Tech, Ag, Precious Metals, Dividend yielders, Small Cap Tech, telecom are all sectors in play.
My questions: Does this rally end once the bears throw in the towel and cover? Will it run through the elections? Can it go to year’s end? And will we ever see carbon based volume return to the market, or are we all just trading with Skynet?
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October 13th, 2010 at 7:21 am
I would say AG stocks are going into orbit with the rally in corn plus China’s need for fertilizer….Also, it seems China has been selling treasuries so I suspect they have plans for that cash….
October 13th, 2010 at 7:28 am
Four Letters for you Barry – POMO.
October 13th, 2010 at 7:34 am
► World’s most successful hedge fund managers turn bullish on stock market (Reuters)
And there you have it.
October 13th, 2010 at 7:40 am
I guess I’m just ‘dumb money’. I’m staying in the market but not buying anything more because we are clearly in Fed Ponzi territory.
Pros like you can dance to this music because you think you are close enough to the exits but it’s guaranteed destruction for the individual investor.
I’m guessing nothing will happen before the elections.
So Barry, who is going to ‘eat’ this boom in commodity prices?
gm
October 13th, 2010 at 7:43 am
Over the last 50 years the market hasn’t topped until the small investor is totally invested, margin debt is at a record and IPO’s are abundant.
QE II won’t result in the stated goals of improving the economy and lowering the unemployment rate. Insiders and large investors have known about QE II for a month and they have shown us type of inflation thatwill occur; precious metals, hard and soft commodities. This will lead to higher prices for the necessities; gasoline, utility, food and clothing prices. The working classes will have to purchase less of something unless wages rise faster than prices, ie wage inflation. QE II ,QEIII or QEIV will not solve our basic problem, capitalist will create jobs where wages are low, raw materials are low, low regulation and greed is high, QEII lowers the purchasing power of the dollar and raises the price of raw materials that we import, how does that make us more competitive?
October 13th, 2010 at 7:43 am
My favorite forward-looking scenario:
Melt up ==> Republican gains in November but not enough to entirely stop Bush tax cut expiry ==> market weakness on (modest) selling to lock in gains before year-end ==> some HF trader algos go wild causing domino effect ==> liquidity from market evaporates ==> Melt down
October 13th, 2010 at 7:43 am
BR,
nice Q:s, ones, in these daze, that should be asked frequently..
re: “..a strong earnings report from Intel..”
Denniger has a different view, here
http://market-ticker.org/akcs-www?post=168940
point being, broadly, as long as We care to accede to the sonorous suspirations of ‘The Mighty Wulitzer’ http://search.yippy.com/search?input-form=clusty-simple&v%3Asources=webplus&v%3Aproject=clusty&query=The+Mighty+Wurlitzer+Operation+Mockingbird
We would be well served by forwarding our reservations for the services of these fine people
http://www.guidedogs.com/site/PageServer
To Sum it up as: “The Lies are Blinding us..” is, of course, simplistic, in the extreme, but, for some, it’s a ‘Feature’, not a ‘Bug’. ‘Twas it, always, such?
October 13th, 2010 at 8:06 am
Here’s a link to request seeing a copy of your mortgage note, I haven’t used it yet, just thought many would be interested. I can only guess how long it will take your bank to reply – but you never know what you’ll (not) find!
http://action.seiu.org/page/speakout/wheresthenote?js=true
October 13th, 2010 at 8:13 am
The Fed would dearly love a ‘feel good’ rally back to a Dow 14,000+ record. ‘How can we be in recession if stocks are at record highs?’
This is not an easy project, as stocks are already richly valued. But in principle, if the unit of account (US$) is devalued sufficiently, the Dow can be pegged at any level they like.
Dow 36,000 sounds like a nice round number, plus it would make a hero of James K. Glassman.
October 13th, 2010 at 8:21 am
For the conspiracy buffs, POMO = liquidity.
October 13th, 2010 at 8:21 am
Clearly the Government ‘put’ is in place with the election looming. The free money is at the door step, the dollar is being trashed.. so under those circumstances a melt up is most likely in the cards. I imagine 2011 will see the big correction.
October 13th, 2010 at 8:26 am
FWIW: I think we are at a crossroads right now. Euro is my bellwether and 1.40 is the milestone; will it cross and stay up or not? We should find out in the next few days.
- Does this rally end once the bears throw in the towel and cover?
It should but probably wouldn’t. IMO this rally is mostly ‘cash is trash’ induced. Ben’s current and coming devaluation are in the process of being discounted. In this instance it’s not what the bears do but what Ben does that matters.
- Will it run through the elections?
We might even get a celebration meltup if GOP takes control…
- Can it go to year’s end?
Likely if some funds are really behind the curve and need to catch up. But again, rising prices are more a function of devaluation.
- And will we ever see carbon based volume return to the market, or are we all just trading with Skynet?
A return of carbon might happen once Ben has succeeded in raising inflation expectations but probably after inflation proper has been entrenched and incomes start going up (could take a while).
The grey swan: China revalues 10%+. Very unlikely for now.
I hope these thoughts help.
Cheers
W
October 13th, 2010 at 8:34 am
For the conspiracy buffs, POMO = liquidity=ends up in the stock market and other assets because banks aren’t lending to anybody.
October 13th, 2010 at 8:39 am
BR I am not arguing against the intent of POMO, just arguing where the liquidity ends up when consumers aren’t taking on more debt and banks aren’t lending to anybody without excellent credit. Look at their income statements and balance sheets. Absent trading profits they’d have no profits.
October 13th, 2010 at 8:45 am
The Fed’s QE2 announcement will have to be backed up by the appropriate action. The Board is trying to figure out how much QE is in asset prices. If the Fed buys the right amount, it will be a non-event. Too little and assets (especially bonds and gold) will decline, too much will drive prices higher, short-term. Look for a small purchase and lots more talk. That should do the trick.
In the background, the American profitability machine continues to out pace the blinkered expectations of the Austrians, the Tea Partiers, the shorts, the day traders, Zero Hedge and their minions, and the politicians seeking to regain power. Stocks are not richly valued, not by a long shot. These are the world’s greatest companies.
Pairs trade of your life: long global equity index, short US Ten Year bonds. Buy it and stay with it.
October 13th, 2010 at 8:45 am
“Excessive pessimism, under-invested Main St, a gradually improving economy, backwards looking sentiment, and a flood of liquidity….”
Barry, Barry, Barry…. I’ve learned more from your blog than from just about any other web source, a book or a college class. Of all the Wall St figures, executives, money mangers and pundits – I’d expect YOU to understand it best: unlike Wall St, the Main St does not have to be invested during the market rally. The Main St. does not have to generate monthly and quarterly statements to their investors.
The Main St. cannot be in- and out of stocks in 15 seconds (as absolutely will be required during the next Great Flash Crash), the Main St cannot play “hot potato” with stocks, the Main St is ill-equipped in the search for the “greater fool” stock promoting game…. but unlike before, The Main St knows that!
And as far as pessimism, improving economy and sentiment – again, of all the professional money managers i’d expect you to be the one really knowing what’s happening outside of the “gated communities.” The pessimism is a result of what people experience, it’s 100% warranted.
And finally, while some have the “flood of liquidity,” The Main St. has been and is being robbed by zero interest rate policy.
BR, I think you should start making your trading decisions with the expectation that The Main St is not going to be the “last in”, aka biggest sucker again.
October 13th, 2010 at 9:05 am
According to the HFT trader on 60 minutes, nobody cares about fundamentals, PE ratios, earnings announcements and the like. It’s all statistical relationships and probabilities and most trades close out in a few minutes at the longest and a few seconds otherwise. This is 70% of the market volume.
Add new POMO with high velocity trading of EFTs that mimic the S&P and the market has nowhere to go but up.
So, BR, by admitting you are in only 50% mol, you are admitting you have no real knowledge of how this market operates. You should be in 100% or none. 50% is chickenshit. Just saying.
October 13th, 2010 at 9:12 am
The markets can remain irrational longer than we can (bet against it and) remain solvent.
Still true, after all these years
Mark
http://blog.mdwoptions.com
October 13th, 2010 at 9:13 am
“Under invested Main St”? Consider the possibility that Main St has just left Wall St.
October 13th, 2010 at 9:14 am
For the bearish amongst us, including yours truly, it’s all about patience and portfolio construction/management. Most bearish arguments are to do with solvency/leverage and its impacts (be it consumer, corporate, banks, government, etc) but you have to be accept that liquidity can hide solvency problems, especially in a thinly traded market (look at how much of the recent move has come in overnight gap ups).
Generally speaking it’s not really in anyone’s interests (apart from the small % of those who’re set-up to profit from a down market) for the market to go down. So hope/faith/inertia/rose-tinted glasses/whatever else you want to complain about/etc are all valid reasons why the market may go up. For those who’re bearish, suck-it up and stop whining! They’re all known and well-established factors in the trade we chose to make, and you’re not paid for being ‘right’ but for making money. It’s up to us to set-up our portfolios with the appropriate skew; so that they can survive when we’re wrong (even if it’s temporary and short-term) so that we can profit if/when we’re right. People forget that the path is as important as the ending (which is why I don’t ‘get’ the hyperinflationists who want to short Treasuries in size now, but that’s another story!)
October 13th, 2010 at 9:18 am
PS. I’m not a professional trader, you are. Ill go in when the Fed announces a firm commitment to keep the pump going and provides amounts and dates. Their objectives are obvious so why not participate in the transfer payment when it rises from the level of jawboning into fact.
I’m of an age where its more important to hold on to what I have accumulated over the years that bet it on Fed speculation. Plus, I have responsibilities that require less risk. Plus, I’m at a point where I’m set for life if nothing unexpected occurs and I don’t blow it by thinking that stock picking is still a valid concept. And budget a bit. The pump mechanism has proven itself to be reliable. I’m concerned about the fuel, which only comes from the Fed at this time.
You, however, are using OPM as a professional asset manager and should not be so concerned about these problems. This is an antiseptic market. Your objectives are far different from mine, and most of your readers, and always will be. So, why are you so timid? Do you still think stock picking works? Many of your colleagues at other funds have publicly disagreed.
October 13th, 2010 at 9:21 am
I’m getting this NASDAQ, August, September, October, 2000 kinda feeling…. Come on Barry…. You know better than this….. Being long this market is the “Michael Jackson” trade…. Never …. Never…. land….!
The S&P has the technical potential for back to back snake eyes, waiting for the shorts to cover is no reason for being long stocks, what’s the upside here. If you’re playing QEII, there are far more efficient methods… Earnings discounted against the dollar are zilch….. You know that, I know that and even my grandmother knows that.
Shorting equities here could cause some anxiety, however, if you were to put a gun to my head, I would short the fuck out of the S&P…. Sell the futures, sell the cash, sell the calls and buy the puts…. A nice Texas Hedge.
October 13th, 2010 at 9:23 am
If we accept that we are in a trading range akin to 1966-1982 as the market consolidates the gains from the 80′s and 90′s, the market should test the highs and lows a number of times. Right now we are making a run for the April highs. If that proves successful we will then make a run to the all time highs where we would then fail. On these kind of runs it is not unusual for 90% of stocks to trade above their 200 m.a.–we still have a ways to go.
October 13th, 2010 at 9:39 am
contrabandista13 Says:
October 13th, 2010 at 9:21 am
Shorting equities here could cause some anxiety, however, if you were to put a gun to my head, I would short the fuck out of the S&P…. Sell the futures, sell the cash, sell the calls and buy the puts…. A nice Texas Hedge.
reply:
————-
And that’s the test. A HFT market that only uses probabilities, momentum, and statistics doesn’t relate one iota to your ideas. Shorting is only valid as a function of liquidity, aka POMO. Remove POMO and the market falls. Nothing else matters, except to sell newsletters. Right now, the liquidity is coming from the Fed cash recycling plan where cash from MBS collections goes to primary dealers for debt, who spend it in the markets. To me, this is too small to support a market explosion, but will prevent a market collapse. So, imho, I think you are wrong and imply fundamentals still matter. To me, the Fed is the market and comprise the universe of fundamentals.
October 13th, 2010 at 9:41 am
I am with those saying that Main street has left Wall street. They were sucked in and sucker punched in 1999 and again in 2007. I think they will be very reluctant this time. With the “flash crash” warning fresh in mind (and still unsolved), I think they will go into commodities if they leave cash/treasuries at all. They may indirectly feed stock prices as they drive up commodities to the point where the pros decide to take profits and leave for something else. QE2 will give us “inflation” via commodities speculators driving up consumer prices, but with high unemployment it will be the type of inflation that kills the economy rather than saving it. The inflation we need is the demand driven kind that comes from increasing the minimum wage by $3, but that tool is not available to the Fed.
October 13th, 2010 at 9:42 am
@BR
Just for clarification POMO refers to a Native American group in Northern California located near the Mendocino National Forest, about 2-1/2 hours NW of Sacramento. With a unique language, the 1990 census indicates that there are 5,000 POMO living in California today.
BTW the word POMO in POMO means “those who live at red earth hole”.
Let’s hope we are not facing a red earth hole shaded by red ink falling as Bountiful Ben Bernake quantitatively races the U.S. economy into an abyss, a red ink earth hole.
October 13th, 2010 at 9:44 am
Interesting how hedgies define “productive ”
“It is sitting there and not being used,” he told the conference. “We want to make sure these companies are using cash in productive ways like buybacks, dividend payments or acquisitions.”
How about suggesting that Corporations spending piles of cash on the OTHER productive things like R&D, launching and promoting new products/services, building capacity, automating supply chain. You know, things that actually produce goods and services.
I’m still bothered by the chart that shows China buying twice as much stuff from Europe as US.
October 13th, 2010 at 9:47 am
Don’t fight the Fed. This is a win-win market. Don’t think, just buy anything and everything with both fists. Buy and hold is back.
October 13th, 2010 at 10:07 am
“The bottom line remains: Excessive pessimism, under-invested Main St, a gradually improving economy, backwards looking sentiment, and a flood of liquidity continues to make it challenging to be short this market.”
What is your evidence for saying that there is “excessive pessimism” and “backwards looking sentiment” out there? The AAII numbers show excessive bullishness. I hope you’re not using those “anecdotes” that you so often deride.
October 13th, 2010 at 10:07 am
My MO was almost completely tactical in this rally because I could never reconcile the market move with economic fundamentals and the state of the business cycle and when it became clear the Fed was expanding its balance sheet at an exponential rate I was your basic deer in the headlights; which way to jump? Dunno!
Excess trading, trailing stops and hedging probably cost me 40% of the rally; i.e., I participated in about 60% of the upside. Overall it’s better though because I avoided a hunk of the previous decline.
Basically that is still where I am: Capital preservation remains a primary motivation; it’s been like walking on a bog for over a year, grassy green and clear on the surface until you sink in a little too far and the black mud suddenly comes boiling up from underneath to take you under.
October 13th, 2010 at 10:11 am
We took out the old May ’10 highs on the SPY this morning. Considering the positive aspects of:
- QE-2 (it’s coming; we all know it)
- Excessive pessimism (always bullish)
- Dollar collapse (a good thing)
- High Frequency Trading (get over it Luddites)
- Mid-term election pork (bullish)
- Massively profitable corporations with tons of cash
Sure we’ll get a pullback in January, but until then … the trend is up. The stock market is not the economy so unemployment doesn’t matter. The stock market doesn’t care about the unemployed.
October 13th, 2010 at 10:28 am
Who the F Knows. Whatever it does it will surprise the biggest number of people that’s for sure. Agree we are trading with Skynet – a.k.a. HFTraders but also the Fed, imo. For all we know markets could run into April next year – after October seasonality does get a lot better….one thing in the way is that there’s a potential double top at S&P 1220. Shorts have re-loaded on a lot of the ‘mo stocks – nflx, ffiv, crm, etc. if the earnigns on these stocks are good enough, most shorts probably cover and we have Dow 12,000+.
October 13th, 2010 at 10:39 am
“Massively profitable corporations with tons of cash”
That’s one for the ages.
October 13th, 2010 at 10:52 am
@Jack Damn Says:
“- Massively profitable corporations with tons of cash”
About to be given away as bonuses to WS robber barons
”
US bankers set for record pay and bonuses for second year
Pay and bonuses at US banks and hedge funds are set to rise 4% this year – outpacing the growth in revenues – study finds”
Funny how all these banks involved in fraud are lowering their loss reserves so as to have more money to pay themselves. I guess they don’t believe that any of it will be clawed back…
October 13th, 2010 at 10:58 am
Re melting up — IBM has had a close higher than its open for 26 out of the last 29 trading days (since Sept 1st). It just setup a nice short entry on a 3min chart with very small risk a few min ago. Just hanging tight until setups like these appear is the plan here. I’m foregoing joining the herd in some leveraged long way for the time being.
October 13th, 2010 at 11:09 am
Main Street the “last” buyer of equities? With what money? Main Street is dead broke.
Now I would argue that Main Street, if it had money, is probably dumb enough collectively to buy in at precisely the wrong time (AGAIN), but there’s no more money there. The c@sinos broke their best “customer”.
October 13th, 2010 at 11:15 am
1st in the class work BR. I don’t know whether there are better blogs out there but, am thankful for the perspective in any event. From my perspective, as we go down this QE & devaluation road I would rather be, if I had to be in equity at all, in BOP surplus country currencies and stocks NOT those that are right in the middle of the process. Am studying these days Weimar and Great Depression research. Markets look all fluffed up for more rock and roll through the election until such time as we recongize none of what the Fed is doing will reduce employment or, get the economy off the runway. The Dow and S&P are as usual, discounting a rosy scenario.
October 13th, 2010 at 11:16 am
The Melt up before the carnage:
http://www.bloomberg.com/news/2010-10-13/mortgage-flaws-may-lead-investors-to-challenge-1-3-trillion-of-securities.html
“Securitization Flaws May Lead Investors to Fight Mortgage Deals”
“The failure to include MBS trust names on documents and to properly assign loans to the trust may encourage MBS holders to challenge the entire securitization, rather than press lenders to take back individual loans that were fraudulently issued, according to Rosner, whose firm advises investors and regulators. That could set off legal fights over almost all subprime MBS sold to investors. ”
When this shoe will drop is hard to tell. My guess is after the state AGs, pension funds and others start to bunch up on class actions against the major banks.
October 13th, 2010 at 11:18 am
dead hobo:
In context….. “if you were to put a gun to my head….”
“… To me, the Fed is the market and comprise the universe of fundamentals….”
I agree….
“….To me, this is too small to support a market explosion, but will prevent a market collapse….”
For the time being….
“….So, imho, I think you are wrong and imply fundamentals still matter….”
We can ignore them for now… However, fundamentals always hold the bull by the balls….. I’m not short of equities, however, I will be soon.
contrabandista13 Says:
October 12th, 2010 at 11:46 pm
Barry:
You’ve been around long enough to know that, you buy the rumor and sell the confirmation….
I’ve been itching to sell this stinking carload of sardines 24/7 and I’m ready willing and able to hit that sell button with my big fat hammer. I’ve been long of gold, silver and sugar… I guess that you could say, I’m a New York type of guy…… So far as equities and bonds go, I’m sitting tight until after the election. As tempted as I am to probe these two markets from the short side, I do not think that time is here just yet…. As for buying stocks and bonds, I think one has to be insane to do so at these levels, once these babies go, don’t look for a bounce to get you out… Having said that, my daily jobbing, has been very modest and primarily from the long side in both the minis and the 10yr….
We’re having hyper-inflationary event in a deflationary context. It’s just not really noticeable yet….
Stick around, you’ll see……
Best regards,
Econolicious
October 13th, 2010 at 11:26 am
The calm of the CBOE Volatility Index right now may be a signal that investors have gotten too complacent
VIX signal: Are investors too complacent?- WSJ
http://finance.yahoo.com/banking-budgeting/article/111008/volatility-index-says-investors-are-calmer?mod=bb-budgeting&sec=topStories&pos=2&asset=&ccode=
October 13th, 2010 at 11:42 am
no wonder why Main St has no desire for the market, Main St is Melting Down …
Across the US, Long Recovery Looks More Like a Recession
http://www.cnbc.com/id/39647980
October 13th, 2010 at 11:47 am
Barry I really would expect you of all people not to be on the buy the headlines bandwagon:
“strong earnings report from Intel”
A little history:
“Friday, August 27, 2010
Intel lowers Q3 revenue guidance
Santa Clara-based Intel (NASDAQ:INTC) now expects revenue to be $11 billion, plus or minus $200 million, compared to the previous expectation of between $11.2 and $12 billion”
And yesterday:
“The company on Tuesday reported record earnings of $11.1B USD, up 18 percent from a year ago. ”
So they barely matched lowered expectations!
So yes there is a melt up and my impression is that it is %99 POMO driven
BTW Intel gave a rosy outlook for next Q. Lets see how long do they take before lowering guidance. They are beginning to look like the BLS and their every Q revisions
October 13th, 2010 at 11:47 am
The Fed is most likely to announce the second phase of quantitative easing (QE) in the policy statement after the conclusion of the November 2-3 FOMC meeting. The minutes of the September 21 meeting indicate an extensive discussion about the unsatisfactory pace of economic recovery. The utmost importance of taking action to promote economic growth was visible in the repetitive mention of the need for additional monetary accommodation. The following excerpts from the minutes support expectations of further Fed action at the close of the November 2-3 meeting.
“Participants discussed the medium-term outlook for monetary policy and issues related to monetary policy implementation. Many participants noted that if economic growth remained too slow to make satisfactory progress toward reducing the unemployment rate or if inflation continued to come in below levels consistent with the FOMC’s dual mandate, it would be appropriate to provide additional monetary policy accommodation.”
October 13th, 2010 at 12:12 pm
“The Main Street” will never be all-in again, especially considering the baby-boomer demographics. We were naive before. We now know it is, for the most part, a rigged game. Maybe we can win a few crumbs around the periphery.
October 13th, 2010 at 1:21 pm
I was looking at ORCL ($28.64) this AM.
The last time this stock was at this level was 2000 (on its way to 45 as the NASDAQ rose to 5000) and then 2001 (after the crash) on its way to $7 and change.
Will we see the same again?
October 13th, 2010 at 1:33 pm
This market is beginning to remind me of the summer/fall 2007 market where we had a melt up, especially of the commodity markets. A few months later, we had the fire across the bow of Bear Stearns and a few months after that the blow up of the subprime mess. This time, we could be in for a bigger mess if the US Government is the new Bear Stearns. The federal government is in a far weaker position in 2010 than in 2007 given the trillions that has been spent. And if we face a major jolt such as a mideast blowup or dramatic rise in interest rates, the US government faces a mess with all of its short term debt. Just seems like way too much alcohol is being served at this Wall Street party…..the very toughest decision right now is when do we need to leave the party.
October 13th, 2010 at 2:08 pm
Presidential Cycle wins again, despite what Grantham says (and I think he says it only to take more shots at Greenspan).
October 13th, 2010 at 3:12 pm
Overlay the NDX chart from 2003-2004 with the same from 2009-2010.
We’re following that pattern almost perfectly. We’re in fall 2004 right now on our way to the 1634 NDX highs of that move. That would equate to somewhere around 2150 NDX or so, possibly a little higher. Similarly, the same pattern on the SPX would take us to around 1250 before a correction starts.
New highs should be coming on all major indices this fall, and we will likely top in December. A correction in early 2011 should be similar to the correction in 2005 if the pattern continues to play out, although the plethora of daily gaps could make a 2011 correction a bit deeper than the 2005 one.
Of course, Gold should correct in early 2011 as well, but that should prove a huge buying opportunity due to the continued beggar thy neighbor currency debasements around the world.
October 13th, 2010 at 4:32 pm
Reading these comments is more fun than work.
October 13th, 2010 at 9:49 pm
@contrabandista13 ….You wrote: I’m getting this NASDAQ, August, September, October, 2000 kinda feeling…. Come on Barry…. You know better than this….. Being long this market is the “Michael Jackson” trade…. Never …. Never…. land….!
————————————————
Really? How can you possibly compare a year where the SP500 is up a mere 5% on the year to the virtual top of the Nasdaq bubble? Let me remind you that the price/earnings ratio for the SP500 presently lies comfortably within historical norms, whereas the price/earnings ratio on the SP500 was around 29. The p/e ratio on the Naz then was, well who knows really? There were so many components in the Naz that had very low revenues, negative earnings, and eye-popping valuations. Was it 100 p/e ratio on the Naz then? Maybe.
The lousy economy aside which is obviously poisoning sentiment, this really is comparing apples to oranges.
October 13th, 2010 at 11:32 pm
Main Street does not matter. They’re out of the picture. Have been for years. Chewed up by sharks and sharks are all that remain.
Melt up?
Even at this late hour I am still with Richard Russell, who earlier this year suggested the country would be “unrecognizable” by year end.
Wake up and smell the Elliott Wave.