Good Morning. Each of the past three days, I've stumbled into my office at around 5:00 am anxious to see if the futures had succumbed to some big, bad event overnight. Stocks have enjoyed a nice run of late and as such, have become overbought. Thus, the bear argument that the indices are currently ripe for a correction kept ringing in my ears. Although there have been issues with Chinese data, concerns about the Yen, and more data from across the pond than I can shake a stick at, each and every morning I was greeted with green screens in the wee hours. Each and every day then, I have expected to see the bulls produce some follow-through and for the market to finish higher. However, each and every day this week has ended in modest disappointment as the early gains have given way to program selling (btw, is there any other kind of selling anymore?) as the days wore on.
Sure, I understand that traders have been waiting on the data... and the Fed... and then some more data this week. And no, I personally haven't put much new money to work either as waiting patiently for the new-and-improved GDP report and the FOMC announcement seemed like the prudent thing to do. And now that the all-important jobs report is just 24 hours away, I guess waiting for that makes sense too. Thus, the fact that the S&P closed Wednesday 0.40 above Monday's close shouldn't be too terribly surprising.
However, the bears don't see this week's action as traders simply playing a waiting game and keeping prices around what appears to be (well, to me anyway) an equilibrium point. No, my furry have friends informed me, in no uncertain terms, that the action is bad. No, make that, very ...
