Monday, August 18, 2014

Don't Doubt the Bore

I am sure on Friday we had shaken the confidence of investors with that mid day swoon, but now on Monday, it is totally forgotten, and Ukraine just lost a bunch of credibility as their reports seem bogus.  Perhaps Ukraine was long Treasuries and was doing a pump and dump on global financial markets!

We have the relief gap up that there is no World War III and we are actually tacking on a few points from the open as I write this.  The lagging of the European indices is notable here, as the Eurostoxx index is still way below Friday's highs, while the S&P has blasted through them.

I am sticking with the the theme of the bore, with a grind higher that will leave investors shaking their heads that the rally is artificial.  You have to trade what the market is, not how you want it to be.  It is back to the summer doldrums, after a temporary August storm.  Over the longer term, still think S&P gets to 2100 before we top out.  Short-term, perhaps some consolidation, and not much opportunity.

No comments: