Thursday Outlook: Spin City

April 22, 2009



I got a lot of emails wondering where we’ve been and the simple explanation is we had a family health crisis to deal with. Resolving this is proceeding. I was very much aware of the tough market on Monday and the resulting rally Tuesday.

The negative earnings and economic news means little it seems. Sure, there is some good news here and there and bulls cherry-pick it while dismissing the negative as just old news. According to Art Hogan, chief market analyst at Jefferies & Co.: “The important thing with these earnings reports is that no one has been so atrociously bearish with their guidance to slow the market down. We’re clearly in a situation where the path of least resistance is higher.” That’s comical.

Volume still remains on the light side which means markets are dominated by Da Boyz who are just picking each other’s pockets. You’ll note that earnings reports from what are now loosely called banks have either been rigged (GS) or have been bolstered by proprietary trading activity. That’s your tax dollars at work.

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