Dip Buyers Rule

The market continued its low volume trek higher yesterday and investors continue to buy every dip that this market dishes out. The true tell for a trend change for this market will be the day they stop buying the dip.

The market is pretty much overvalued on any fundamental metric that you can find, that is meaningless because it can remain that way. Fund managers are clearly chasing performance and don’t want to be left out, unless there is some really bad news or an “event” that rocks the apple cart, the trend could stay higher.

In my opinion we are still in a  lovely bear market rally and maybe we will have legs to 1100 before we stall. In the meantime have fun and enjoy.

Best Buy, Kroger and Adobe report today, we have a speech from Bernanke  and we will see more data on retail sales. Janet Yellen from the Fed called for a jobless recovery, and tepid growth going forward.

Watch stagflation, that’s the real killer and that is what is in store.

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