The rhetoric about investors not making a dime in the markets or the lost decade is starting to get old, as the S&P flirts with 1400. Bill Gross and Roubini keep making their rounds about how the equity markets are dead, which is not very constructive for those with long-term macro equity plans. Roubini was right in 2007, but he’s been ranting and bearish ever since the S&P hit 666 and has been all the way up to 1400–can’t make much money ranting! The S&P has been in a 10 year+ range absorbing the major moves that have taken place in the previous decades (DIGESTION). Even though we’ve crossed 1250 50 times or so in the last decade, investors who had a monthly investment long-term plan (in S&P funds) are going do just fine vs. sitting in cash. With a little education and effort, perhaps you even caught some stocks that have returned 500% like and Apple (AAPL), or traded intermediate trends for cash flow!
Anyway, futures are up a bit, as markets could use a little time to let the 8 and 21 day moving averages catch up. Some work above 1388-1390 would be constructive, but a pull back to the 8 day moving average, which stands around 1376-1380, would not even change the bullish complexion. Most guys out there are just looking to fade the rally vs. trade the rally; I wonder how that’s been working.
Disclosure: Scott Redler is long: AAPL, GS, FB, ZNGA, GMCR short: SPY
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