Let me just this out of the way. I remain a bear. I think the economy remains weaker than most suppose, margins remains highly elevated and prone to a reversion, and everything remains manipulated due to the Fed's primer pumping. That said, I am not short this market. Given the signs of strength we are seeing on the demand side and the technical backdrop, I would not be surprised if the S&P 500 moves to new highs, probably into a range around 1,776 area.
Looking at yesterday's market, equity prices gained with the S&P 500 gaining in value by about 70 basis points. This is in conjunction with all sectors gaining in price and a large increase in demand, demand that gained across the board. Outside of the technical backdrop, I think the increase in demand as prices move to or close to highs suggests that higher prices are in the offing. Although I am bearish, I try to be pragmatic when the evidence suggests it.
Looking at yesterday's market, equity prices gained with the S&P 500 gaining in value by about 70 basis points. This is in conjunction with all sectors gaining in price and a large increase in demand, demand that gained across the board. Outside of the technical backdrop, I think the increase in demand as prices move to or close to highs suggests that higher prices are in the offing. Although I am bearish, I try to be pragmatic when the evidence suggests it.
No comments:
Post a Comment