Wow, what a market!
Not the actual daily market but that pre-market continues to be the BEST place to invest as we’re now (8am) up 70 points from yesterday’s 2:30 low. 2:30 is the traditional beginning of the “stick save” phase of the day’s trading and the expectations of low-volume market shenanigans kept us on the sidelines yesterday although we were shorting the S&P futures at 1,125 early on but that was pretty obvious as you can see from this Fibozachi chart and we were done with that trade at 1,122 – not trying to be heroes.
I was pointing out to members yesterday afternoon that, as impressive as this little holiday rally may seem, it’s very lame compared to last year’s 1,500-point run (20%) from Thanksgiving (11/21) through January 2nd with a nice 600-point move between Dec 24th and Jan 2nd.
What is it we’re all exicted about? On November 20th the Dow was at 10,318 and now we’re at 10,550, up a whopping 2.2% over the same period. What’s up with that? I thought things were FANTASTIC this year, I thought on-line sales signaled the second coming, I thought the consumer is back and demand for commodities is through the roof and we’re going to be hiring people again and our credit problems are solved and the banks are all solvent (other than the 150 that were siezed, of course) and that rates were going to stay at zero forever and the governement was going to spend Trillions on infrastructure so we’ll all be rich, rich, RICH!
Is that not true? Well, to be fair, if we pull way back to November 2nd, we were way down at 9,500 so we could say we’re having a 1,000-point rally (10%) since then. There – doesn’t that make you feel better?
IN PROGRESS
