Republicans are Not Going to Fight Obama

That is what the headlines say this morning.  This has been the biggest worry of the market so now we are seeing the blowoff rally.  If you believe that the Republicans are giving up you should not be reading this blog.

A couple of points this morning, first it seems that the overall market has not thought about the parallels to the Apple stock market rise and what is going on in the S&P since the first of the year.  The prevailing attitude among money managers is that they will know when to get out.  But what happened with Apple, the market declined 27 percent over 3 months before the major players started talking about sell signals, and the vast majority are still trying to buy it.

And third, the changes that need to happen in Washington have not happened and it doesn’t seem that there can be much optimism that this will change in spite of the headlines this morning.  See article here:

http://www.nytimes.com/2013/02/17/opinion/sunday/friedman-how-to-unparalyze-us.html?smid=pl-share