So, the administration figured out how to manipulate the markets for more than to just “save the economy”. They figured out how to manipulate the markets for political gain. Bravo! Healthcare and financial reform have been cornered and “thy bidding will be done”. Now let’s see them go after campaign finance reform and lobbyists. Good luck with that.
The markets paused on the potential opening of Pandora’s Box. But after a few selective leaks about SEC voting and a White House denial of meddling, markets have reversed back to the primary trend of grinding higher on light volume. Amazingly again, the downside volume was huge and then it just dried up, again. Even with the sound and fury, the uptrend remains intact. How de do dat?
Obvously the “trend is your friend” will die hard. When it does, it will be a downside bonanza. But we’re not ready yet. Over the intermediate-term, here’s how you’ll know: When analysts can no longer upgrade earnings estimates or price targets. When that slows to a trickle, then its over. This latest move up has been accompanied by massive analyst upgrades. That fuels the “buy the anticipation” trade.
Never mind about China or Europe or the massive engineering job underway at Treasury and the FED. It won’t matter until it does. The game of the Wall Street complex MUST continue regardless of a few minor details like a fraudulent Shadow Banking System and few bad investment products.
PS. Whenever S&P Equity does something, do exactly the opposite.
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