I’m reluctant to give out any strong opinions this morning. On paper, there is no reason to sell stocks, unless you fear a Romney Presidency. It’s true, earnings have been coming in a little light. But when was the last time this market cared about that? Once the earnings season is over, this market will trade in a convoy again–all up or down based upon macro-themes.
Italian and Spanish yields are ridiculously low and there is renewed demand for their paper. The crisis has been blunted and there’s nothing you or your stupid friends can do about it.
Tech is very oversold. If I was putting money to work this morning, I’d buy tech. As I write this, I’m +0.6% for the day. Following Friday’s -3% drubbing, today’s gains are merely a trifling.
My philosophy with stocks, for lack of a better term, has been religious. Faithfully, I believe that stocks will trade up, all the time, even when they’re supposed to go down–not so much different from your faith in “Le Fly” winning on a continuous and frequent basis. In a sense, that makes me a “perma-bull.” However, I’m naturally a pessimist, always favouring the dark mug steeped with black smoke instead of the glass of sunshine. It allows me the latitude to never be disappointed. Life is nothing but upside surprises for Senor Tropicana.
I need a few right now.