THE DULL
Its a relative snoozefest in the markets today as the wild swings appear to be yesterday's news.
Doubtful those wild swings are gone for good as I still have my 1500 point up day hanging out there some where.
Market internals relatively flat.
Strong sectors- oils, drugs, gaming, biotech and utils while metals, ags and banks lag.
Libor and Ted Spreads moving down - SLOWLY and if you are waiting for big moves lower before you invest - my guess is the markets will be lots higher when 3 month LIBOR gets to the 3.5%- number - today 4.42%.
A little food for thought- when George W. Bush took office, the SPX was near the 1365 level and the DRUG index was at/near 410 - SPX down about 31% in the almost 8 years while the DRUG index is down about 37% in the period. Not sure many folks would have bet on those numbers when he showed up in office and with a likely Obama win I will go with a reversion to the mean trade with a likely big up move over the next year regardless of who resides in the white house.
posted by DAVID at
11:57 AM
2 Comments:
David, would you be looking for a rally into next fall then? Seems oftentimes the low is in the fall..so maybe a rally into the spring/summer? Just curious as to your take..you seem to have a good intuitive sense about the market..
Just thinking its a good time to get in for the long haul- and expecting that +1500 djia day sometime soon
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