RtS, I read your response on the News Link thread and thought I would respond a little more here.
<This means the NDX is best for short positions but I expect a bounce though certainly and not necessarily a longer term successful one. I would like to see the BPNDX fall to much lower levels before going long wholeheartedly.>
I agree whole-heartedly. I don't think this market is going anywhere for quite awhile. I think there are going to be some ups and downs within a trading range.
The IBD article had some very good meat in it IMO. Overall, Wall Street is not so dumb - they know that sales growth is needed to really get this economy going and we don't have it now and when its coming is not really clear.
I think these excerpts from the article say a lot.
<The U.S. economy grew at a faster-than-expected 2.4% annual rate in the second quarter. A lot of that was due to surging defense and other government spending. Strip out those factors, and GDP grew less than 2%. Economists say the U.S. needs to grow at least 3% to spur hiring.
"You had the market rallying 15% (more on the Nasdaq), interest rates down to 1% and people saying 2.4% GDP was a big surprise," said Rob Stein, investment advisor and economist for Astor Asset Management and publisher of a newsletter, updated daily, at astorllc.com.
"It was like living in Chicago in the winter and it's 10 degrees every day. People get excited when it gets up to 25 degrees."
Unemployment remains high, with few signs of meaningful job growth ahead, Stein notes. Retail sales growth has slowed to below 5%. If jobs don't pick up, people could keep more money in their wallets, he says.>
Don |
