“Murphy told Quinn that his wife was driving him to drink. Quinn thinks he’s very lucky because his own wife makes him walk”.–A Leprechaun somewhere
It was a fun week, the indices ripped, the S&P closed above 1400, $AAPL tagged 600, the transports (IYT) found a bottom and the financials exploded through resistance.
All is well with the world as we find ourselves back in the land of Pandora where everything works. Yes, I am tongue in cheek, but the tape is strong. Two signs of strength for me is that I’m a seeing an “up” tape on strong dollar days. A rarity in the past. Also the transports, which looked like death for a spell, reversed higher this week.
Going forward (at least for the next two weeks) I think the tape rips higher. Why? Because every vanilla fund manager that has been waiting for the pullback (that never came) will have a howitzer pointed at his head by his boss to be long. The dip they wanted to buy never materialized, so the only option for them now is to recklessly chase performance and tack on some alpha. This will push price higher short term.
I’m long some boring stodgy names in front of this because that is what they will buy. I also bought a pant load of coal and steel stocks early last week because the group is in the dirt and they may be next. The fertilizers also looked awesome on Friday.
The S&P has already reached the “year end” target of the majority of the “gurus” in just three months, so they either have to raise targets soon or start selling. I doubt they will do the latter.
I just launched a ten hour corned beef and cabbage dinner with carrots, onions, potatoes and spices in the slow cooker. The top comes off around 6PM. I may pop a picture up of this beauty later.
We have had an awesome couple of weeks on my site as well as in my chat room. So stop on by.