There is a 1 in 3 chance that a U.S. high school student has stolen something from a store in the past year. I thought I would start with this, as it may be the most eye opening statement we will have today.
So, what happened. The market yet again hit new lows, this time going right to our November bottom again, in massive downswing. Since November, investors have occasionally indulged themselves with a few days of optimistic activity. But reality has continued to win out, leaving stock markets stuck.
Many prominent strategists have said stocks have retreated to valuations not seen in decades. Leo Schulteis at Alpha Hedge Fund says well "most of us are wired to be contrarians in our head, and momentum players in our guy".
He's dead right, and everyone now is waiting for more convincing evidence that things are returning to normal. That's what this is. The FEAR mounts with each new dialogue, new package, or discovery of yet another fraud, as we heard yesterday with a large hedge fund manager again with another Ponzi scheme. Investors seem to see value at 7700 area, as we repeatedly hit this support line and struggle around it. But, investors are not seeing value yet in an upturned market, a bearish sign that could lead the market to another new low, which we project 7370 area, but much less likely.
Around Obama's populist moves, and his strategy of trying a bi-partisan approach, the Republicans are taking a huge strategy risk in not supporting the stimulus, betting it will fail, and that they will retake the house in two years.
I don't care who's right anymore, I'm just saddened that we remain a nation split in half.
We could not gain entry to the put recommended yesterday as it opened at almost double prior day close.
Ask yourself as you follow the economic disaster of our lifetimes if you truly have facts on your thoughts, or mere newsbites fed to us.
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