Buy? Sell?
1. There has yet to be that strong push forward. On the desk, everyone is waiting for that move to signal the top. When markets come to an end there is usually the egregious move. But day in and day out we trade in this tight range slowly grinding forward.
2. The earnings front: It seems that there is nothing but positive earnings. Stock after stock are topping analyst estimates.
3. QE2 ends in June. I believe that as long as the “Fed” can spend, the market moves higher.
Now, that does not mean the economy is improving overall. We have an unemployment rate greater than 9%, which is more like 15%. There is still a housing crisis as foreclosures are still eminent. The “Fed” is testing the banks balance sheets, to see if they could sustain a double dip recession. Does this strike anyone else as a bit peculiar? We also have fears of inflation and rising commodity prices. At this rate, a pair of socks will cost $100. And we can not forget all this shit that is going on in the Middle East.
-Justin Valle
There is no direction in this market. Tod the spooz traded in a tight range. Both our longs and shorts worked for us. As we take a look at the bigger picture and evaluate the broader market, we have no evidence of a big move. There are plenty of questions that still need answers such as; where are rates headed, what will happen in Egypt, will there be anymore quantitative easing. With these unanswered questions ahead of us, one would speculate we will eventually pullback. For the time being we still remain to grind higher. But when the pullback comes, it will come fast and hard. Take a look at our CEO Jeremy Frommer’s blog; 10 Reasons The Stock Market is Delusional, for further conviction of a pullback.
President Mubarak smiles for the camera
The streets of Cairo erupted in violent protests as the National Democratic Party building provided a fiery backdrop. Egyptian militants exchanged tear gas for rubber bullets then for live rounds to quell the throng, sending the death toll spiraling to 50. The government, equipped to deal with small-scale religiously motivated uprisings found itself unable to handle the surging middle class. At the center of this crisis is President Hosni Mubarak, who has been accused of corruption and dictatorship by his people seeking an end to his 30 year strangle hold on the country.
For once, I must take sides with the protesters; not because I believe in their fundamental views, but because of their willingness to exercise their rights. For any country to succeed the people must be empowered with a voice. In America, we are a nation of the people, by the people, and for the people and while these words have never been uttered by the Egyptian leader, I believe this notion should be a universal truth. The scale and heterogeneity of this uprising proves that the system is fundamentally broken. Whether change is affected overnight or over years remains to be seen, but one thing is for sure; Peter Pyramid and Sally Sphinx won’t go down without a fight.
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