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Monday, November 29, 2010

Market Thought... nice comeback

The market had a nice turn around today. Believe it or not, but my market thesis still has not changed from my last market thought post 'nothing new'. (Hence the political blabber, but seriously Julian Assange and the government leakers should be prosecuted for espionage :)

There were a few interesting developments since Nov 22 (the 'nothing new' post):

1. Economic data the week of 11/22 was simply kick ass. I mean kick ass!!! (Has anyone seen a chart of, MWW? Its kick ass because of the data released.)

2. California subsidizes other state economies, just like Germany will have to do in Europe. That is Germany's cost of a unified currency. And Germany's all time high confidence indicates the Germans do not mind this position. (p.s. the Euro will not fail. Too many powerful people want it to succeed. They will figure it out. They are and have been adjusting economies accordingly to make it work. If anyone did not realize that in May 2010, they are fooling themselves.)

3. The market has been consolidating for 4 weeks, and it is approaching an interesting spring board.

The light support around 1174 is about to get complimented by the 62SMA. Not to mention a spike in the VIX, which is overbought.

A few notes:

1. IBM selling off today?!? Big boys, grow a pair. Seriously. With a trailing PE of 13, IBM will be trading at 148 by year end. That is at a MINIMUM.

2. AAPL - I read this article about Apple having a minimal presence in Brazil. Considering Brazil is my favorite Emerging Market, if true, I am pretty speechless by this. AAPL better get their ass in Brazil, ASAP. I mean, why wouldn't a company want exposure to a rapidly growing-economically healthy middle class?

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