The tape look pretty. Most stocks are breaking out, many others look to be on the runway to do the same. Walls of worry are overcome with ease. Just two and a half weeks ago, we were in fiscal cliff hell, but something changed. It's almost like the market shouted a collective "no mas" to the folks in Washington. The market has had enough of their nonsense and just decided to take the tape up a little more everyday. I say kudos to the market for blocking out the noise from the charlatans in Congress. The market seems to have desensitized itself from the white noise in DC and decided to have a party regardless.
The market remembers the pain of Europe, yet in hindsight, it was the best time to buy. As I have always said, the market isn't the economy. Maybe the market took that lesson and just decided to ignore all the rhetoric this time, as the indices drive higher.
Industrial, financials, energy and materials are strong, and even though $AAPL is having its challenges and $GOOG is going lower, the tape still finds a way to trudge higher. Bullish action if you ask me.
You have to be impressed with the numbers that $MS and $GE released this week. $INTC screwed the pooch, but they fail at life anyway, and have now for quite a while. Maybe if they figure out their chips are from the stone age, they can turn things around. The PC is dead, lets face reality.
Odd to me though, is the interest in $DELL from private equity. Those boys are way smarter than me, but I don't see it. I just don't see it. There is so much value out there. but $DELL? Really??? Good luck with that. Maybe they will bring Wang computer back from the ashes too. Yeah, remember Wang?
Our favorite squid ($GS), didn't fail to impress last week with their earnings report. Those guys can make money in a house fire.
$AAPL has earnings coming this week, and the stock seems to be having an outer body experience, caught somewhere between fading growth/innovation and value. The stock looks cheap on many levels but as someone once said, "momentum doesn't chase cheap". Next week will be huge for $AAPL, and maybe the market too.
Economic numbers were pretty good last week, but it was tough to steal the headlines from Lance Armstrong and Manti Te'o. I couldn't be more bored with either story. Oprah finally got more than ten people to watch her show though, so a win for her. Now if we could just get Congress to appear on her show for a star studded string of mea culpas. The meaningless takeaway though, thanks to Teo, is that we all now know what getting "catfished" means.
I always worry when everyone gets bullish, so extreme paranoia is probably a good thing here.
I will be putting out some setups later today or tomorrow. Have great Saturday.