Blake Winston's  Instablog

The session from Wednesday is, in my opinion, is indicative of what we should expect in the near term.  The rally through most of Wednesday was fluff, perpetuated by endless cheerleading by the talking heads on TV.  But, alas, the markets pulled back at the end of the session to close down.  Where I'm going with all this is that at the end of the day, the Gov't can pump as much money into the system as they'd like, but fundamentally nothing has changed and the news from the likes of Capital One, Morgan and others don't inspire confidence.  Similarly the rate of credit card defaults and joblessness is still increasing, albiet at a slower pace.  I predict a near term sideways market followed by a modest pullback through the end of Q2, punctuated by a stronger pullback into September.  Trade carefully.