SubscribeDaily Futures Commentary FINANCIALS March 13, 2009
Friday, March 13, 2009
OVERVIEW
The markets are quiet overnight due to the lack of major news events.
The media is talking about the strong move in the stock market and asking anyone who will listen if this is the bottom while still reporting a huge amount of new foreclosures, lower retail sales and falling business inventories. Just last week the government reported a massive amount of additional job losses. For years we’ve been told the housing market triggered the top in the stock market so I cannot see any reason why anyone would call this a bottom until housing begins to show some improvement.
The current rally is a trader’s rally. In other words, professional traders, money managers and private funds are driving this market higher based on technical indicators. The public or small trader is not participating. The fundamentals have not changed. Professionals are going to do what they do best, generate profits in the short-run. The long-term is dead so selling will begin again once the professional stops buying.
Public traders and professionals have different objectives. The public trader has been …
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