Hi Stan,
no doubt the government wants to avoid a plunge at all costs, and Al loves to be the grand puppeteer. They have done a good job of buying time so far, and maybe they can continue, but I believe if/when the market makes up its mind, it is even more powerful than the PPT, and there will be no stopping it. Natural bias is to the upside, as people like to think sunny thoughts. Government bias also to the upside, as they don't want people unhappy with the government, demanding more tax dollars back, voting them out of office, and panicking. Valuation bias clearly to the downside. Economic status clearly to the downside, but a race against the clock to try to turn it back up before market craters. PPT can prop up the market, but more difficult to prop up the economy, and if earnings don't improve soon, investor's will not continue to pay exorbitant premiums. Seems hopes for a fairly quick recovery are the linchpin upon which this current trading range rests. Seems also those hopes are fading, when looked at in a realistic light.
JP |
