Jump In, The Waters Fine?

The numbers were just released and spending was down a bit and jobless claims decreased by 14,000. Futures are about unchanged from where they were before the report. Asia did well overnight and the rally continues, at least for now.

I was looking at a chart of the indexes last night and revisited that V formation back in November, I recalled the euphoria then and the over whelming call for the bottom. We rallied from 7500 to 9000 and all was right with the world, at least until we dropped hard to 6500. That’s 2500 points of pain in case your calculator isn’t near by.

Personally I don’t know how the government and the pundits are telling us that things are “leveling off” when GDP came in with a figure that was the worst in 50 years. Although I am a bear, I have still enjoyed playing this rally long, and I hope everyone has been playing it that way too, trying to pick short term tops or bottoms is futile. The shorts have become powerless here and the bulls are in charge. Just be mindful that the month ends tomorrow and the hedge funds are aggressively changing performance here.

Protect gains and don’t get too cozy. Have a great day.

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