The title link has a raft of articles that indicate that the happy talk of the 1st quarter may be coming to an end and that a Spring Crash, like last year when the NYSE was making 800 NEW LOWS every day, could be coming.
Clearly, this market is running on fumes.....and CEO spin, funny accounting, and one-off "brokerage upgrades" which usually tell you more about the "float" than the state of the company or the economy......
But with oil and gas at or near record highs, and with rates gauranteed to rise....the only question being how fast; .....where's the beef to keep up the momentum in the markets.....? I just don't see it.
THE COURSE OF LEAST RESISTANCE NOW IS DOWN.....AND PERHAPS DOWN SUBSTANTIALLY. PERHAPS TO DOW 7000 YET AGAIN?
And of course the geopolitical situation is not going to help. With China and Japan nearly warlike on "oil and gas rights" in their off-shore "economic zones."
Iraq and the middle east in general are sure to add to the gloom....with no end in site......and then the ever present possibility of a summer terror attack looms. 'Tis the season....as Tom Friedman seems to imply.
Finally, the Israeli settlers movement could be coming out of the shadows with more attacks on Sharon and perhaps even on the Temple Mount......
So, I'm strictly holding on to cash, at much higher CD rates now, and waiting for this false bull market to crawl into the light of day......
Our summer of discontent is about to begin.
