Timbabear,
>>>> ....but I think the important factor isn't necessarily whether or not the Fed raises on Tuesday....we've been there and done that the last few months and the market seems to respond independently of that event so maybe it's something else that we ought to be focused on.... <<<<
You have a valid point. Frankly my comments on the FOMC meeting is only on a short-term basis. If rates are not raised, we could get a knee-jerk reation to the upside, but that also wont last long. Im not a fundamentalist, so Im not the best to make comments in that area, but from a bigger technical perspective the maket needs to correct the anomoly/abnormality of SECTOR ROTATION.
Keeping it simple, lets assume that this type of extreme SECTOR ROTATION MOMENTUM is not the way a normal market works. In any natural process, anomolies are fixed/corrected to some sort of degree, whether if its the market, or an illness, or war, or what ever. Just a natural process; a YING-YAN approach.
What will it take to correct it, I will let others guess, but at this time it is still not corrected, as witnessed with the gold stocks/recent IPO's/etc. To me thats the bigger issue and keeping it simple. YING-YAN/NATURAL PROCESS - whatever one wants to call it.
As I have said in the past, if the market, hypothetically, reverses and sets new highs tomorrow, but the sector rotation exists - it will just still need to be corrected.
Whatever the fundamental evironment is, the bigger picture for me is that there exists a significant anomoly which has yet to be corrected. Even with the DOW down 1000 points, it still exists.
seeya |
