A New World Maybe
The market technicals are the most important thing in the short run. It will be good to see the S&P’s consolidate above 840. Short-term resistance comes in at 890 if the base gets built.
We like to point out that we try to take a macro view. Looking back at the Macros the period of 2003 to 2007 was a time when Washington and the country was out of control, pick your own bad guy. Keep in mind that Washington is just a reflection of the country at large, Bush wouldn’t have been elected if the populace had not had its head up it’s proverbial rear.
The period 2007 to 2008 was one best characterized as a market where it was just like shooting fish in a barrel, everything had to die.
Now the country has gotten a bit of religion, but crazies like Eric Cantor are still around in Washington, so change is not going to be a layup, but it will happen. This initial bounce out of the rebellion area has been one where you could be long almost anything. Now the selectivity notion will need to be addressed. Not everything is going to go up. The nation will not continue to be one where it is 70 percent consumer based. The country has to and will start building things.
We will address the selectivity issue next week.
The EMA ETF Fund was 1031 at yesterdays close.
7:48 AM CDT