Interesting that there is such a lack of volatility and/or interest in the US stock indices. The Dow is mired in a narrow 200 point sideways trading range for the past 8 trading sessions. On the charts we look a little toppy, but for the life of me I can’t imagine why we haven’t had at least an intra-day pop up to the 11,000 level, if only for a stop hunting expedition.
It just goes to show that in general, there is a lack of interest in these markets, and what we will continue to do is drift sideways to higher.
Stocks absorbed the most bearish news of all when Pelosi and company rammed Obama care through the House and Senate. The fact that we were not limit sellers in the S&P’s shows an over all strength in these markets, with out any outward signs as to why. Ditto for the fact that Crude oil is quietly rallying with the Stocks. In what had been a knee jerk fade trade before, we are now seeing the opposite.
Logic would tell us that higher and higher fuel costs should mean lower profits for US corporations as input prices go up, and the US consumer driven economy will come under pressure, as more and more of a worker’s take home pay goes to fill the tank.
I think its only a matter of time, if we get $100.00 a barrel oil this Summer, that we will have some interesting proposals coming out of the US Congress.
Perhaps, emboldened by the success of Obama-care, Maxine Waters and her socialist followers will be able to cobble enough support to actually nationalize US oil companies, as she suggested in hearings the last time we had $150 dollar a barrel oil. Why I highly doubt the fact that any thing like that could ever come to fruition, it certainly won’t stop the congresspeople of that particular ilk from making such declarations and recommendations.
In any event, only time will tell what we have in store for us this Spring and Summer. Its looking more and more like we will have markets defined by 1) a lack of interest 2) a lack of any serious volatility and 3) a general malaise of uncertainty characterizing the entire nation.
I’d like to take this time to wish a happy Easter and/or Passover to all of you this weekend.
That’s all I have to say about that….
