Besides charts, it's clear that most tech has several quarters to go before the impact of a slowing economy can reach them. Clownbux are looking for a home, and there's few places left that can still impress. The market no longer discounts the future - it no longer thinks more than 1-2 quarters ahead - that's the legacy of clowns who project earnings 10 years away, but ignore the macroeconomic picture this year. But how should we blame them - they're selling something, it's their job to push paper, and for ten years, with a little help from the printing press, it has worked well.
MU impressed, ORCL has a "stunning" pipeline, and I suspect INTC will fare well too (who gives a f*ck about bending some accounting rules? That's the way its done.). RMBS can still fire the imagination, and stuff that should be dead, like GE, if the market was out of its reptilian brain mode, are still holding out.
Not many sectors that can absorb the clownbux. Oils are out, because for one, who understands oil? For two, it's just a commodity, the oil companies are doing nothing new and exciting. Three, gold follows oil, and that thought alone leads modern clowns to unconsciously reject oil.
I think we retest old dung highs, or come very close. The market breadth will turn as we get well into 4k, and the speculative chit will get bid up again. Then we get wave 2 of down - this one much, much bigger. But not as big as wave 3 and 4.
In the mean time, a little weakness into the FOMC, and then a huge rally afterwards. Doesn't matter if AG hikes or not. Absolutely doesn't matter, and he knows it. |
