THE MARKET IS CHEAP

The markets open slightly higher but the internals paint a better picture as there are more than 1,800 net gainers. Gold, small caps, homies, retailers and techs are the best performers while the laggards are oils and drugs. The TRIN is however indicating that more volume is flowing to losers as it stands at 1.4.

I have been hearing this morning about how cheap the market is and what a great buy it is here and now. I don't doubt that it is cheap based on a PE multiple of 16 give or take, but I am not sure that will help us make money in the short term. I also don't know if cheap matters when earnings growth rates are decreasing. Just a little food for thought.