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Stalemate March 29, 2011

Posted by Tom in Thoughts.
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This will be a very short posting, as I am busy with many things at the moment.

The market: (?)  I believe it to be in a stalemate condition at present.  Neither able to go up or down with any conviction.  Now, there is strength, as we have had plenty of “bad news reasons” to go down; but have not.  And there also many “good news reasons” to go up; but we have not.

The broader market, the S&P 1500 index, has a larger than normal number of stocks that are showing weakness.  My concern is the up coming end of the 1st Qtr. and the earnings reports as they come in.  In many ways, this market is strong (earnings wise), but priced for perfection.  Any disappointments will not be met with “understanding & tolerance”.  Make no mistake; there is nervous money out there waiting for signs of weakness.  Why ?  Because we’ve had a very unusual Bull run, that really needs to either correct or pause.

For the time being, we’re pausing.  Stay alert though, it may not last long.

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