The Bullish Delusion Continues
Lets see what the reaction to the employment numbers are tomorrow. There are expectations and then there are expectations. The overall activity index remains stalled out and there is not enough volume to allow the big traders to exit.
I have been asked how low I think the market can go in the crash. My simple fundamental answer is that the May 2011 S&P highs of 1337 needs to be retested before a real Bull market can get its footing. The market needs to clear out all the funny money that the FED created after that date.
The people who talk about this being the new 20’s start of an up-move are missing the point that this country is too divided to work together to reach a positive outcome. We will look back and see that the coming depression started in the arm pit of the country West Virginia and Kentucky and we can thank Senators Joe Mancin and Rand Paul.