MARKET MANIPULATION - Many of you know that I believe, like many, that the Market is highly manipulated. Many also look at historical patterns and I think that since many believe that "As goes January, so goes the year" that the Big Boys will do almost anything to help drive the Market up this month.
I think they realize that it will be easier to hype the Market up this year than drive it down more. It's true, that tech valuation is still moderately high overall, but there are a lot of PE stocks that are very reasonable in other sectors. Our goal is to find them.
As for the catalysts, the relative lack of pre-earnings warnings, improved guidance and visibility, perhaps a relief rally if we continue to get no successful terrorist activity here. It's all about attitude and it just feels to people like things are getting better. We're trending in the right direction. Sometimes rallies continue for no reason other than that.
Plus CD rates are awful.
Lastly, analysts will start the hype machine again about Feb. 1-10. (it already began today with BRCM when Prudential upped its price target about 20 points to a super-inflated, silly $68). It usually starts about 4-5 weeks after the beginning of each quarter, between earnings reports and before pre-earnings warning season for next quarter. Whether most will buy into their hype, it's hard to say, but some will. Since banking relationships are going to be a bigger money-maker for brokerages this year, they want to say nice things about their potential clients.
Let the games begin! |
