AND WE START OFF WITH NOTHING CHANGING

Random thoughts entering the new year.

The PBOC lowers reserve requirements by 1/2 point and away we go. Momentum is momentum.

Markets remain stretched and extended to the upside.

Bullishness is rampant. We know some disagree with this.

Central banks acting like we are in a depression.

Lots of cash still on the sidelines. If upside continues, it will come off the sidelines.

Valuations are at the upper reaches while earnings were flat to down last year.

Biggest worry is a climactic central bank-induced move.

The charts look fine with a lot of names trading tightly and possibly ready to move out again. Selling? What is selling?

AND A HAPPY NEW YEAR!