Kevin, I wouldn't be surprised to see us drift higher tomorrow. Yes, you heard that right. This market has an endless supply of "Phil Niekro" specials! Everybody expects a selloff tomorrow, therefore we may move slightly higher. The MM's will do their best to manipulate the market due to low volume. Tuesday will be sell-off day. Today was a complete joke that the market sold off due to a pre-earnings warning from the crooks or all crooks, GS. Should anyone be surprised? IPO's are nonexistent these days, and trade volumes are at major lows!!!! Hell, these big brokerage houses make their money on IPO's. We really are setting up for a nice rally in June. I expect we shall see 2900 in June, before the FOMC meeting. Thereafter, we rally well into July with some ups and downs of course but, mostly up days. I suspect the Fed will have some biased towards easing rates in the future. The housing market has really declined over the past month, based on personal experiences with friends and families. Their houses are in hot (used to be) markets and have been listed for 2 months now, with no buyers in sight. GDP is still scorching hot but, don't let that fool anyone. First and foremost, financial markets go first, then housing, then consumer products, ect.,ect.. If the fed doesn't back off, or at least have a biased towards easing in the future, then we will see some nasty repercussions. There is still a ton of money on the sidelines from 401-k's. I think when we finally hit that magic # of 2900, market sentiment will change to the positive. One company announcing a pre-earnings warning, will not have the impact it does today. There will come a point where people just say to themselves, I've had enough, and I'm not selling at these levels.
Therefore, I will call tomorrow...."I can't believe the market went up day."
KM |
