What a day. There was stability in many of the beaten up names. The high beta names ran up on air after feeling very weak in the morning, signaling a last ditch effort to rally. They are in for a serious correction. Alcoa did not perform well. JP Morgan did not perform well. Earnings continue to be priced for perfection. Cisco is cheap, Yahoo is cheap, Entropic is cheap, Target is cheap, HPQ is cheap, and Akamai is cheap. Akamai was up 1.7% today. The market closed the opposite of what it has been doing recently. With the exception of the NASDQ, the other indices tried to rally, but failed. Many traders will be out over the next couple of weeks on Passover vacation. May is upon us. At a minimum, the S&P feels like it would like to test 1300. The rally in the morning did not hold, and oil made a relatively weak attempt at rallying. The dollar seems to have found a level where it may bounce. Most importantly Obama telegraphed to the market place that he would be raising taxes. The last time Obama went to war with Wall Street, the biggest of the taxpayers, the market sold off hard. There are no important earnings releases tomorrow morning. Today’s Economic numbers were relatively tepid, and the markets behaviour continues to demonstrate that it is not impressed. Initial Jobless claims tomorrow will show limited improvement and PPI will show continued inflation, how can it not? Apple and Amazon drove the Rally in the NASDQ. Jamie Dimon told investor’s deposits are up significantly, so perhaps there is a build up of cash on the sidelines. But it seems that investors will want to wait on the sidelines for a better pull back than what we have seen. There is no question that the markets trend has been reversed, what is unknown is how long will it last. I have read a number of articles recently about how the Bears have turned into Bulls.
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