The Melt Up Hasn’t Even Started


Barron’s has a social media bubble cover story this weekend which leads me to believe there’s probably another 30-50% left in these names. Of course these stocks are bloated and grossly overvalued, but that means nothing in a secular bull market.  You dont value these names like $AA or $DD anyway. New normal kind of stuff.  Get used to it. As a matter of fact, the melt up hasn’t even started yet. There are $SPX targets of 2000 for the end of next year, I say you can see 2000 by spring.

There is still gobs of cash on the sidelines, many are under performing, retail isn’t playing, and no one believes. Perfect storm kind of stuff.

Ed Yardeni wrote in his letter this weekend that if the botched roll out of Obamacare persists it’s good for stocks. He says, “If the Yellen-led Fed tries to offset the negative economic consequences of Obamacare with more easy money, watch the stock market go vertical.”

So, yet another scenario where bad is good for stocks. The market isn’t the economy.

I’ll post some cool setups over the weekend.

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