The 13 day moving average has been *the* bogey for me the past 5 months. We saw a remarkable run in Sep/Oct 2010 where the S&P 500 did not close below that level once…. well, I thought it was remarkable at the time. But when it repeats again just a month later, I guess it no longer is. We are now again on an identical two month run for Dec 2010/Jan 2011. The Jeff Saut buying stampede (normally 25-30 days) must now be approaching 100 days. I am a broken record here but what is remarkable about the new paradigm stock market is not the move up, but the lack of pullback along the way. Indeed, since The Bernank promised to manipulate asset prices “higher than they otherwise would be” the S&P 500 has only closed below the 13 day moving average for 8 sessions – and all those were due to the wart called Ireland back in November. Otherwise we might be working on 5 straight months without such a simple event as a pullback below the 13 day. Simply mind numbing. I really cannot add much to that. It is permanent Groundhog Day.
We have a Fed meeting today, and no one really even cares because we all know The Bernank will just clap his hands and hand us $75B a month in treats for 5 more months. Ho hum.
In retrospect, I am so very thankful I began my website in summer 2007… at least there was excitement and drama that was just about to begin. Makes for great content. This type of market saps any need for market comment, and puts one to sleep.
Can you imagine?
Aug 19, 2007: The market is up 0.3%
Aug 20, 2007: Today, in a change of pace the market gained 0.2%
Aug 21, 2007: Reviewing the action today, the market gained 0.5%
Aug 22, 2007: The market had a selloff, sinking 0.1%. Hide the women and children.
Aug 23, 2007: We saw a rebound in the market, as stocks gained 0.4%
Rinse, wash, repeat for 25 additional weeks in similar fashion. Try building an audience with that backdrop!! ;)