Well…that was gross!
We would like to put lipstick on this pig but can’t. As we entered today’s action, not much had changed. 65%-plus of the market continued to be bearish while the markets had rallied up. Amazingly over the past few days, new yearly lows were equal to or more than new yearly highs. That tells you everything you need to know about the type of narrow market this has been. And as we have stated on many occasions, when markets are narrow, they are easier to take down when sellers do show up. Today, sellers showed up. Simply put, the bad got badder and the good either topped out or pulled back.
We have been told December had to be an up month. Time will tell. Regardless, rallies continued to be less than meets the eye. If the good really top out, we suggest look out…and it looked like a lot may have topped out today. Of course, we now wait with bated breath for Yellen to NOT raise rates even though they have teased it again and everyone now says it is a lock..
We will have a comprehensive report on the markets over the weekend as well as more commentary on the farce that we call Central banks. The stuff we heard out of Draghi and Yellen this week could make Saturday Night Live’s show this weekend if they weren’t so boring.
Hi Gary, I must say thankyou for your consistent market review weekly. It’s not the same when you are not on the air… How is Brian doing? In your opinion, How much longer can this Fed induced market continue until pop goes this bubble?
That was interesting; Europe was down 0.35% and we were up 2.1%. The reverse of yesterday, and with a good jobs report. God this is confusing.
Gary, I thought you would be interested in Doug Kass’ latest comment:
“As I discussed in a recent speech in New Orleans, many are misinterpreting daily market swings as a real price trend that they can interpret technically.
But I see that as incorrect, as gamma hedging, risk-parity strategies and other quant actions have ruined our markets.
In fact, I think these trends have negated not only some of the value of stock charts, but to some degree the value of technical analysis in general. This places many market participants in the position of having a false sense of security.”
I’m just sticking with good companies that have paid good dividends for long histories, throughout the two bear markets of the last 18 years. The dividends pay my bills and more. I don’t worry about the market ups and downs.