. . . . . Consider the Bigger Picture . . . . . . .
Is the market shaking off bad news??
Rising PPI and CPI [burps?], renewed fear of inflation hyped by Media, etc., Cisco, etc. layoffs, other daily slowdown related layoffs, earnings warnings, FED Draining Liquidity. . . .etc, etc,
And yet today's market is showing initial signs of shrugging off bad news!! Again, I draw a parallel to the March, 2000 top. . . .where day after day, good news was no longer able to push stocks to new heights. That was the clearest subjective indicator that the top had been hit.
Bulls had been in charge for about 6 months and were pushing stocks to the sky, regardless of the news. . . Analysts were upgrading everything in sight. . . [Remember? Wasn't QCOM upgraded to $800 or some ridiculous number?] There was nowhere left for bears to hide [and some even lost their homes]. Any stock mentioned by the media was destined for stardom.
Today bears have been in charge for about 6 months and have been beating stocks into the ground, regardless of the news. . . Analysts are downgrading everything in sight. . .there is nowhere left for bulls to run. And stocks mentioned by the media are quickly slammed down double digit percentages.
Remember when we discussed last Spring's double tops vs. today's double bottoms looking reciprocal? Message 15363028
Kevin Shea then added an analytical view to our subjective one. . .also confirming we are at a double bottom: Message 15375363
Now consider the odds. Are there enough subjective and analytical indicators present to warrant our diving in and buying up the weakness? Or will the Po' Boys refuse to give up their chokehold manipulation?
I'll leave that decision to each of you to discuss and make.
Best wishes all. . .
Rande Is |
