So this morning, The Fly reports on no growth for Jim the “Bow Tie.”
We have ROH getting bought out by DOW. The CEO of DOW said he believes all of America and the world for the most part is slowing down.
BTW I seem to remember a flurry of LBO deal activity right before the market tanked last year. Remember this for the rest of your life. There are only three scenarios when a flurry of deals come through.
1) Times are great and companies want to control a space, 2) Times are horrible and the cash rich acquire companies for pennies on the dollar, or 3) Interest rates are low and soon there will be a negative business environment and companies are looking to beef themselves up for the lean times ahead.
Also this morning we had better than expected retail sales with guidance being raised. Remember that is raising guidance after it had been lowered tremendously.
As well we had better than expected jobless claims.
Will all of this get the market to really rally? I would not bet on the hype here since yesterday turned from boring to death warmed over.
The S&P needs to break 1251, 1260, and then 1283 most importantly. Today is a good day to follow intra day trend lines (like day traders always do) for market direction. Like yesterday we saw a reversal and potentially we may see the same activity today.
Oh Asia is mixed, but Europe is tanking. I am reconsidering getting back into CHK, HK, and PVA. This will be determined by oil. So far oil is continuing its pause. I still would like to see it go down, “but it is gonna do what it is gonna do baby.”
GLT
by GW
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