Very shortly the media will be done with Casey Anthony and will need a “feel good” story for the masses. That new story will be “The Greatest Market Rally of All Time”. I will pretend to be a TV writer for a moment and the story will go something like this:
“Thanks to Obama’s savvy negotiations with Congress over the debt ceiling and the Federal Reserves stimulative actions, today’s job report proves more jobs are being created here in these great United States. Housing seems stable and the Europeans are actually raising interest rates, which suggests their economies are getting stronger. Those facts, combined with strong consumer spending numbers and further debt reductions spell good news. Over the pst two weeks, the Stock Market has moved more points in a shorter amount of time than at almost any other time in history. That usually means a better economy later this year and in 2012. So there is hope.”
Remember, for the media, Uppy Goody, Downy Baddy.
BTW–This year continues to mirror last year. After a May/June swoon in 2010, early July enjoyed a 60 point SPX rally. Here in 2011, we are now into our 80th point since the rally began nine trading days ago. If we continue to follow last years playbook, get ready for some volatility.
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lol
what do you peg the trading range fro this summer?
Scott, True Story…I am feeling Bullish and thinking I have everything wrong. So I google “economy getting better” so I could read views on the otherside of the coin and what I was missing. Your blog was on the top of the search function. I wonder if I promise to go long this rally will stop?
Talking about reading charts, we have a nice Head and shoulders pattern on the SPX forming from Dec of 2010.
No.
On the one side o the trade: “Past performance is not indicative of future results.”
On the other: “Heads and Shoulders.”
Cultural Guilt, can I get an echo?
I agree with your post Scott.
One day I may actually get it right…Stockpicking is a lot easier.
Seems like everytime someone notices a potential head and shoulders patter forming the bears get the shit kicked out of them. Well at least since June 2009 that’s how it’s worked.
Rex..the Comex, LME and Shanghai Copper 5 year charts have a completed Head and Shoulders with a retesting of the neck at the moment…China is slowing…maybe this Bear will finally not get the shit kicked out.
Nymph- As I understand it, Google search results are personalized and based on what Google knows about your browser and your Google account (if you have one).
Increasingly, Google search results are based more about what Google knows about you and less about what Google knows about the World Wide Web. I used to be thrilled when a search of my name brought up my website as a high ranking result, until I figured out what was going on.
Google search provides confirmation for the self absorbed that yes, the world does revolve around them.
Until they search on a different computer.
MX, I limited it to a 24 hour period so I got the most recent comments on the subject of this rally/market. It is a Very interesting point about Google Search..
So what you’re saying is get ready for the turn down into an aug/sept low?
He doesn’t know what he’s saying but he says it well.
You usually amuse me…
FACTOID: The market bottomed in the first week of July last year. Get your facts straight and bring your A game.
This year it was the last week of June. Close, very close…
I need to get my eyes checked. Could have sworn the market low YTD was post-Japan earthquake back in March. March / July… yeah, close enough.
But overall I see your point regarding the next couple of months. However I just don’t see a big pullback in the near future. Then again, the best pullbacks are those that no one sees coming.
lol is this guy serious
Uppy goody; downy baddy applies to the greater economy and jobs picture as well. It’s not just for gambler/traders.