Monday, November 7, 2011

If Only You Believe in Miracles Baby

Crazy busy day today as the automated lab robotics were delivered. I was at work for 6am and ran around all day long. Good to have some down time.

If Only You Believe in Miracles Baby
Clearly I stole the blog title from the Jefferson Starship song:

Sometimes (well most times) the daily kind of noise can get into your head. That's ok, if you can tune it out. If you cannot then you risk missing the forest by staring at every tree that comes along.

This is going to be a short post because it's simple now. The Euro news has passed it's apex. Enough promises of some kind of bailout have been made, it's all details and silly back and forth now. Whether Greece is bailed out thrown overboard has limited impact, the golden goose here is Italy and that is going to be backstopped by whatever means necessary. Yes I know Italian bonds are screaming higher in yields, but that might be mostly speculation being pressed before the bailout.

I had real fears about earnings season this time, but it has gone fine. The only monkey in the wrench (Die Hard) is the ECRI still calling for a recession. I doubted them last year (they said no recession, I said yes) and was wrong, so I am lax to dismiss them again this time.

The post I made on October 28th still holds as does the chart:
The price action is telling the story right now. I think there may be some scary opens going forward if some headline gets put out that causes drama, but those drops are going to be supported by buyers coming in. It's a broken record here and elsewhere but market players are not exposed to stocks right now and need to be. The contrarian in you may say "then it's time to be short!" but it is way early for that angle to be in play.

It may seem a miracle the market came up out of that big break lower in early October. It may be even more of a miracle that after a red hot October, stocks keep going up. Sometimes you gotta believe in miracles, baby. Like I do.

Have a good night.


David Batista said...

*raises hand* I believe in miracles!

Great, now I have that song stuck in my head! Oh, and now I can't stop seeing an android Robin Williams dancing in my head, too . . .

GawainsGhost said...

I believe in miracles.

What goes up must come down.

It's a miracle!