“I would like to lock all of my enemies in a room with a coughing baby”-Someone

That’s this market right now, unlike the movie which made us all “experts” on the beauty and elegance of a delightful Pinot Noir. This flat line sideways action has us all confused. I chat with specialists, sell side guys (usually bad analysts on steroids), traders of all kinds on a daily basis, and the question is, “1400 or 1350”? The opinion at 1400 is “but we get a monster pullback and it’s time to pay for all our sins”. Some say we die right here.

We are struggling here, but we always struggle at highs. Is it exhaustion? Where is the next catalyst? Earnings are about over, and Europe has been “saved”. The market didn’t sell the “good” news about Europe being saved, but it didn’t buy it yet either. Actually it has been buying this outcome. Now what?

Tomorrow is the new month. It is that special time where the vanilla managers put “all” that new liquidity to work. What will they buy and how much new money do they really have?

Nothing excites me more than seeing my knife shine in the moonlight. Now I wait. We’ll see.


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