Honey, Show Me the Money?

So we had a wonderful > 1% rally yesterday? Isn’t it? Then why smaller cap cousin Russell 2000 (know as RUT) closed lower? What about the Trains, what happened to the Dow Transports? Why are they not moving with the Dow Industrials if everything is fine? or is it the actual economics of Transports that is in shambles. Check out the last update from Bureau of Transportation Statistics (BTS).

Well, who knows it might be revised to a higher number next month. You may want to read this to see if this is really the end of recession as we know it.  Or how about this? UK’s economy declined 2.4% vs 2.1% forecast. Well it may sound only 30 basis points difference, is a huge 14% off and when you multiply that by $2.3 or so trillions (UK economy) that’s a lot of billions !!

If this is a bull market, then it gotta be different from the past century. Where is the volume? Where is the demand intensity? Where is the stock supply depletion? where is the value and the yield that is usually associated with bear market bottoms?

I wonder if the complacency in the VIX suggest calm before the storm. More questions than I have answers for. What do you think? Any reasons why you think this is a bull market?

We’ll know more in the coming days as best quarter in a decade comes to a close, and so are the bonuses..for the time being.

Food for Thought.

Profitable Trading, OP







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