Pauly B

Will Fundamentals Improve Fast Enough to Keep Up with Markets This Week?

I see some strength starting to develop over in the bond market in the TLT and IEF. Also the VIX is starting to take a bid. Many of the mega cap names are posting shooting stars and weakness in the candle patterns showing that buyers are not buying at these levels. I sense institutions are not buying for now. I look for a pullback and more volatility and consolidation over the next two weeks.

How to Play the Real Story Behind Earnings

The amount of debt the government is creating will have a huge factor in the markets. There is only so much the FED will be able to hold back on rates until they have to raise interest rates to sell the bonds. There will be a point that China, Japan, and others will throw up there hands and stop buying until rates are adjusted. Some of that is taking place now where countries are moving away from the dollar in the news. We should be reducing debt for the markets not increasing it.

All we will have is expensive money for business and that is not good for growth and jobs.

Where is the XLF? Why are we not getting strong participation from that sector in this current breakout?

We are heading lower folks, Technically we are at a junction on many of the charts both in the dollar and the S&P. The next couple of weeks will shake this out.

How to Play the Real Story Behind Earnings

The CEO's of these companies know exactly what you are talking about. They know that Q3 and Q4 numbers are going to be worse.

More concerning though is small business that give really give employment. Just driving around my area I see literally hundreds of vacancy signs in strip malls and commercial areas. I see no recovery there.

Strange too is there are alot less UPS trucks in my neighborhood than there were two years ago, ummmm, Kinda correlates with their earnings.

I suspect something will blowup out of China, the dollar, or our bond markets to correct this silliness.