Tuesday, May 19, 2009

The market will go up, until it doesn't

So my call for the S&P to peter out around 875 was wrong. I am thinking now that the S&P will make a double-top at the 930 area. However, so long as the sheep are willing to go along with the green shoots idea, the S&P could trade to a little bit over 1000 or greater. Sheep in this case are dumb mutual fund managers who have to keep up with performance.

One must remain nimble and defensive and not get married to one idea. While we know the economy is screwed in the medium term, the sheep have not caught on yet and may not for months.

No comments:

Post a Comment