The market faked both a breakout and a breakdown today, churning investors in the meat grinder because it’s fun. I’d be remiss if I didn’t say “today means nothing. Tomorrow means the world.”
Big jobs numbers due out tomorrow, which will definitely set the tone for the market going forward. There is a certain sense out there that we are about to break out to a new range. Before that happens, the economy needs to show signs of life, else there will be ample reason for a sell off. Of course I can go on and on about FPE’s and p/s ratios of some of the tech names out there. But, once again, they are merely today’s stars, not “the market.” When you are gauging “the market,” you look at big cap stocks. For the most part, those names are not incredibly overvalued. They are more mid-range and can go either way, depending on the economy.
It is my belief, the economy is getting markedly worse. However, that does not mean tomorrow’s numbers will be bad. Who knows what type of welfare related jobs program the government concocted over the past month. Remember, this is NOT a battle of truth. This is a battle of sentiment, vis a vis propaganda.
For now, the bulls are benefiting from the lies come out of DC. Frankly, I don’t see a reason for them to stop lying, at this moment in time.
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