AREN’T YOU GLAD YOU FUNDED YOUR 401K by APRIL 17?

Yeah, so. Isn’t it great to be an individual investor, reading the newspaper and watching TV for your information? You probably really believed that the economy was “percolating”, that housing has “bottomed” and that the world is a “better place”.

It’s all propaganda and bullshit. I mean, it’s all going to zero, right? Nope. But if you’ve bought the “Economy is Great and Europe is Saved” rally since last year, you are probably a bit uncomfortable. After all, you bought assets that were “inflated” by the Central Bankers of the world.

But we all know that story. What’s amazing is that we’ve come to accept, even relish it.  

Listen, the market is drier and seemingly less liquid than at any time in the past twenty five years. There have been trillions in liquidity pumped but if there become an impetus to sell, there will be nobody home. And the volume (which no longer matters) is half of what it was in 2007.

Sure, there are extreme viewpoints of sentiment but there is no overly bullishness or bearishness reflected in the market action. We are in an intermediate term uptrend and a near term downtrend. And aside from a few huge moves in individual names, the market has settled into seemingly watching paint dry. Except for the dismemberment of the QE trade in materials. Does any of that mean anything to you?

I’ve targeted the SPX 1310-1320 area as first support last month and we are almost there. You don’t think this bounce is putting in a near-term bottom, do you?