Another lackluster session and I am beginning to sincerely believe this is the quiet before the storm. Storms are usually looked upon as something to avoid or at least get to a shelter before it hits. Which brings us to today and watching the large caps falter and the small caps stagnate.
If I were to guess, in this market that is all you can do for the near term, I would pull some cash out, move some stocks to bonds and wait out the storm. Personally I like cash as I wonder if this is a sick market that is going to barf soon and everything is going to get some of it on them. You know too much medicine can and will make you very ill if not treated promptly and properly. If we are speaking, in loose terms of course, the Fed's and the politicians who have us at their heart and will sacrifice anything to make us whole again.
O.K., so I jest, what is important is the FACT that these folks have poured on the medicine and are doing nothing to alleviate the symptoms of becoming worse off than were before. The problem in a nutshell is
The Keynesian motif of “look after the short term, and the long term will take care of itself” reigns supreme.Now the problems have started to come home and roost. This is one reason why the markets HAVE NOT risen to new heights lately. And the low volume, well that is another story of the manipulations of the wily, 'oh-so-wired predators' or 'Five-Fingered-Financiers' who work the night shift and the complacency of the cash crowd.
SPY closed at 140.13, SSO closed at 57.86 (aftermarket), GLD closed at 160.31, SLV closed at 31.25, WTI oil closed at 106.99, Brent closed at 123.42 (and falling) and the USD closed at 79.86.
. . . eventually the small caps will need to improve if the market is going to head higher. The flow of money from the small caps to the large caps is not what typically happens in a strong market.
The 500 at the close.
The DOW at the close. Compare with the 500 above and see the decline. Also note the DOW did not follow the 500, but lagged.
I am going to get a tee-shirt made that says “DaBoyz Rule”. Last post, see everyone tomorrow.
Written by Gary