Thursday, June 16, 2011

Feeling Heavy

Its not just me but the the stock market is feeling kinda heavy. Indicators, breadth, trend, support - all are under attack if not already bearish. And even when there are good opportunities to bounce, it does not.

Oversold after 6 down weeks - one whole day up
Hitting news lows a few days later with a modicum of positive news - a half day up

Pundits are everywhere talking up the market. "Great buying opportunity" Er, I do not think so.

But corporations are flush with cash - yes, how does that make the stock market go up if the cash is overseas?

Expanding on that, we've got June 2's "Next stop: Dow 20,000 - 10 reasons why the market will soar and June 16's"11 Reasons why Stocks will Storm back Soon," which must be better since it has an extra reason.

Horse hockey! (Col. Sherman T. Potter)

How about lots of hot IPOs? - Pandora below IPO price, LinkedIn approaching a 50% decline from its intraday high on its debut, don't even look at RENN - the Facebook of China.

It's no wonder the Facebook of Facebook is seemingly rushing to get its own IPO going.

Just ask the bond market - the 2-year yield dipped to a record low this morning. Smart money is doing exit, stage left.

The Air Is So Heavy and Dry
Strange Voices Are Saying
Things I Can't Understand

It's a Cruel, Cruel Summer
Leaving Me Here On My Own
- Bananarama 1983

2 comments:

Tier 1 said...

Speaking of bonds... Mike, did you see JNK and HYG today??? High yield got hit very hard despite a good day in blue chips. LQD was fine though. Something is happening in the high yield market.

-Will

Quick Takes Pro said...

I wrote about this in Barron's. The ratio of junk ETF prices to high grade ETF prices was already heading south.

Today's action was "WOW!"