THEY ARE BACK

I was out for a few errands but now back and I see the markets are mixed but the Naz is taking a hit with the QQQQ down 1/2% and theSMH lower by about 2%. Most of the GO GO stocks are also lower led by GS BRCM AMGN AAPL and GOOG. This does not bode well for the overall market. The NAZ internals have turned flat and the NYSE are green by 950, and they are being skewed by higher fixed income and higher oil stocks. The 10 year interest rate is back down to 4.64%.


On another note, in addition to the giddy Mark Haines this morning, Jim Cramer on real money is now saying:

"What we are seeing is typical bull-market behavior, very different from what we saw even a month ago -- and I am cognizant, as you know, that some of this is expiration-related and blow-through-strike-related, when those strikes usually serve as lids.

There are two keys to noticing the difference between this market and the previous one we just morphed from. First, we were perpetually opening up, and you had to fade the opening or sell it. You had to do that because the money from the opening was from overseas and was quickly blown away by U.S. selling.

Now, you have a market that opens gently as bulls hope it will come in, and then the bulls capitulate and come in."


I do not want to rain on the parade, but following these guys has not been a great proposition. Cramer always seems to get excited at the highs and depressed at the lows. Remember the studies show, and they were done during a big bull market between 1989 and 2003, buying 5 and 10 day highs is not the way to make money. Keep your powder dry and wait for pullbacks as will be signaled by an overbought VIX and oversold SPY.