Little Signals Popping Up
My take on the 2012 markets is unchanged from the beginning of the year. I don’t expect a bear market or a bull market this year, those kind of things are waiting for the election results.
In the meantime the markets are over priced as little pieces of worldwide austerity creep into the picture. McDonalds is probably the key stock to watch in terms of worldwide austerity and CAT is another stock to watch in term of a China related backoff. Cat is back down to the 104 area where we said longs should be sold out in January. Granted Cat went higher for a while but that was a little icing on the cake for the bulls. Apple remains the darling fad of the decade, a great product that almost everyone who can afford it now owns, and it is worth noting that the longterm support level is $ 410 on Apple.
And from a charting standpoint GE had a blowoff in completing its right shoulder formation yesterday.