So, another b.s. “solution” to the problem and another big b.s. rally on the so called fix. What an embarrassment. Investing has devolved into gaming macro data points and government rescues. This is why I am reluctant to manage opm on a daily basis. Trust me, the Euro financial system is as insolvent today as it was yesterday.
Well, for the first time in a while, the MITES are smoking in a rally. I think we might have a bottom in relative performance in here. Absolute is trickier. The point remains, if you are bullish in economy and markets, you should load the boat with MITE. Bull markets need bull market sector participation.
I am enjoying the bounce, but not trading. Remember, I expected a rally from a June bottom into mid-late July. Hard to handicap the magnitude of that rally considering the poor earnings announcements pouring out of corporate America every day and the global macro data continue to disappoint. So while I am hopeful the risk-on trade can scream for a couple of weeks, it might be a choppy rally, and highly selective.
My bigger concern regarding the markets is the fourth quarter with a cantankerous election, a fiscal cliff scare combined with the Euro debt crisis and a rapidly decelerating BRIC. Make your long side profits in here now. They will be harder to come by in the year’s back half.
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