Wednesday, August 04, 2010

DANCING

63% up volume against aoverbought readings should bring a few days of weakness, but there is no evidence of a return to the bear market has begun or is imminent, not based on supply and demand data.

SO you have a few choices, you go with flow, you stand aside.....being patient is the hardest thing to do in investing.

IMHO the fundamentals don't jive with the market action. But that currently is not making any difference. Then any data even slightly skewed positive is made into a mountain from molehill.....so you can play their game.....or not.

On NPR radio, they were reporting on how this year there were MORE foreclosures than in 2009 !!
".....the legal and financial issues have not improved....." and the main reason given for the problems was not subprime loans it was "THE ECONOMY"....mostly loss of job.

So the market is up 80% from the depths of the problems, and the foreclosures are INCREASING, worse than at MArch 2009 market bottom.

That's dancing to the beat of a different drummer......the US $ is losing any foothold to value......the US MKT in terms of value of our DOLLAR has basically done absolutely nothing since March of 2009....and our growth can be near 100% accounted for from gov stimulus....

D

No comments: