At the close


Dow +0.38% to 16025. S&P +0.57% to 1829. Nasdaq +0.94% to 4240.

Treasurys: 30-year +0.6%. 10-yr +0.42%. 5-yr +0.24%.

Commodities: Crude -0.07% to $100.3. Gold +0.56% to $1302.2.

Currencies: Euro +0.65% vs. dollar. Yen -0.29%. Pound -0.37%.

Comments (1)
  • sl100
    , contributor
    Comments (112) | Send Message
     
    Nasdaq Index and Small caps are the most overvalued. GOOG for example is now 400B plus with a PE of 35. Also lot of short Squeeze going on in this Space. Some of big funds like Fidelity Contra fund and Fidelity Growth fund which holds a lot of speculative stocks are moving this with new 401K money. If you hold any of these funds its a good time to bail out these as they will drop faster than the mkt as they are big and cannot get out soon and also hold a lot of the highly valued stocks in the name of growth.

     

    Good time to slowly liquidate long positions due to high valuations and slow to no growth in the economy, especially growth finds are in danger now. Also last week 24Billion money moved out of equities but still the mkt went up this week looks like market makers are holding lot more inventory of equities now and trying to squeeze shorts or sell it mom & Pop.

     

    Folks look at your 401K and move them to cash/stable value funds now atleast partially as the valuations are very high and debt on corporate balance sheet has in created more than 100% since 2007 from 6.5T to 12.5T. Margin debt is also all time high now and growing every month. They have been waiting for growth and this has not come and this is a structural problem.

     

    Last few weeks many companies announce Job layoffs this occurring more frequently recently some are doing with out announce under a 3year plan. Lot of the financial companies have reduced work force by 10% from the past year Bank of America had 270K now have 245K in the recent filing, so are many companies. Jobs from Govt are also stalling soon.
    13 Feb 2014, 06:23 PM Reply Like
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