Earnings season is right around the corner and you can guess that there will be some mediocre results. In fact many earnings expectations have been tempered recently as has GDP estimates. But you can guess that forward guidance will be “optimistic” in order to help justify the current rally and to keep it sustained.
Some market prognosticators are postulating that the markets are up over the past few days because inflation has peaked. Remember, it was the inflating assets, bought with the cheap QEII capital, that helped levitate the markets back to where they were before the Credit Crash and served to “balance out” the deflationary forces of bank holdings.
You cannot have it both ways. Either inflation is good for stocks or it is bad for stocks. In this environment it has been good, but only for stocks and commodities and not for anything else. But these past few days of market rally have been thanks to the end of the quarter. The mark-up in high-beta and momentum stocks is shameless. Tape-painting is now illegal, but only when it is to the downside.
So enjoy the end-of-the-quarter and our “Flag Waving Holiday” rally to SPX 1307…
If you enjoy the content at iBankCoin, please follow us on Twitter
don’t think that our flag will go up that high…but totally agree w/analysis.
“It’s the calendar, dudes”
Sorry you missed the upside..nothing like six weeks down then two days we are almost back to even.
Buy buy buy until the end of July!!!!!!
eggzactly
1306, You picked the Wash and Rinse Point. FCX is also dragging in Trend buyers at this point too. I look at it all and think about the point that China’s Shanghai Comp sold off more then 1% last night over fears of a pending rate hike…Inflation, true, you can’t have it both ways.
Fwiw, Fly just posted he bought FCX…