The Tedious Yellen Bounce
The April 15th happy talk comments by the Fed chair would appear to have provided one last bounce in the top formation, but that all is about to become history.
The markets and investors are loaded up, fat cat stocks are leading the way during this Yellen period, stocks like MCD,GE,CSCO,CAT, and GS. At the same time the Hot-Tech group, the former recipients of the mad-money crowd, stocks like FB,GOOG,NFLX, topped out on March 4 and are down more than 20 percent.
The rest of the market should follow. To me it is interesting in the amount of energy that CNBC puts into just a few corporate names. There is a whole world out there that they totally ignore. I don’t know where you live, but I am saddened at the number of retail businesses in our area that have closed in the last year and this is a relatively affluent area. It would appear that we are imploding from the inside out. Some of this is the fact that a company like Amazon, which basically has no earnings, is sucking the lifeblood out of the country and spinning out market appreciation to the speculative, funny money financed, investor class. This has to end.
The S&P average during this market topping period, 34 days now, is around 1862.