(I’m sure not a surprise to anyone, but ‘they’ annoy me… especially CNN money as of late, w/their commentaries. I read blogs for commentaries. Commentary does not belong in real news networks.)
The markets are down… it must be the housing numbers out today. NO! But what the headlines are not focused on is that Iran will talk, and oil inventories are good. (High gas inventories suggests an ease at the pump is coming, putting more pressure on inflation. The slow down in the housing market is NOT a story. If everyone knows it, and knows it is going to happen, then it is not news. If anything the housing slow down is more of a story to combat inflation than anything else. Why isn’t the media talking about that? The lower sales and lower purchase cost reduces the inflation pressure.
The markets are down because the markets became overbought last week and they were due for a correction. There may be a few days left of it (w/an up day in between). The techincals show (at least for the Naz) it is well above the SMAs, and overbought so a consolidation is in order.
IMO, now (and by the end of the week) is a good time to slowly start to get into the names you wanted to before the run up. (i.e. AMLN, FDX, GS, MDRX, PALM…etc) There maybe some more of a correction, but not much… that is w/the exception of Oil. I still believe crude is going to 67-69.
Just want you to know that there’s at least one person who reads your blogs on a daily basis (me). I appreciate your thoughtful comments and not so irrelevant thoughts.
Thanks, Dan