Yellen insures another move?

We have been telling you for ages that markets are on a central bank-induced asset party. Nothing has changed. Mrs. Bubble teased away with “patience”…”no patience”…”data dependant” and a whole load of bullcrap. The bottom line is that Janet is not going to raise rates unless the markets force her to and so far, markets have done nothing wrong. And now you have Japan and Europe in a race to see who can print the most bucks. As the euro and yen have crashed, their markets have soared. Add in China easing and negative rates in many areas and the juices still flow. Without naming names, a respected hedge dude believes we could see some 1999ish activity as greed and noise picks up. We are seeing some of it in the biotechs as we have reported to you the valuation nonsense that is going on there.

Small caps and mid-caps have edged out to new highs with other major indices getting close. It still remains a 60-40 market as the bear market areas remain just that…bearish. But with the recent counter-trend rally in the euro, those areas have bounced. We will need to see more before calling real bottoms in those areas. They include Energy, oil& gas and the rest of commodity land.

We now enter end-of-quarter window dressing where nothing bad ever happens. Of course, window dressing is illegal so it really doesn’t happen.

The best bullish areas continue to be biotech, healthcare, medical, managed care, semiconductors and retail of many stripes including department stores, discounters, home improvement, restaurants, apparel and drug stores

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    Penn says:

    Watch out for Real Estate bulls as I am in the field and we are seeing just what we saw from 2002 to 2005 with FHA rules getting more and more lax. Saw new home subdivisions going up in Phx area and giving 3% down to kids buying $250000 homes.. I know how this ends in a year…..

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