Seeking Advice

Thursday Outlook: Commodities, Global Markets

Dave,
I think you said it pretty succinctly, "So the liquidity bubble continues to expand and investors are lovin’ it. It is what it is folks, enjoy it while you can." I've kept invested in the market (albeit at lower levels than 2006 or 2007) against my better judgment and feelings but that has proved prudent so far. I remain watchful for signs that either the government is removing liquidity or that investors are getting tired of little signs of real recovery - if that ultimately comes to pass.

Right now, I get the feeling that the only things that matter are that the government says they intend to continue to provide stimulus (1st time home buyer credits and the like) and the Fed indicates that they will keep rates near zero. And for now, maybe that's most of the market...

Tuesday Outlook: Commodities, Global Markets

Dave,
Always enjoyt the chaets and the short term oversold probably means an up day Tuesday (or Wednesday) I suppose.

There was no apparent "stick save" at the end of the day, which has been unusual on down days, recently. I wonder if there's signifcance to that. I'd cut equities (long) to a little above 40% a few months ago which drifted down to about 34% as the market drifted to the March lows. Now, with the rally, I find my portfolio at between 42 and 43%. But, I wonder whether the games "da boyz" play is coming to an end, meaning less propping, no more stick saves, and maybe a return to reality - you know that place where real economic data drives market action. If that's arrived, maybe I should be taking my % equities back down a bit. Watching and waiting for a sign, I suppose.