TGIF

  • Was that little midday dip the correction?
  • If the S&P 500 reaches levels of valuation seen in the worst bear markets the downside potential is between 450-500. While I still believe this rally has more to go, do not fool yourself into believing that there is no downside risk.
  • The market is no longer deeply oversold. The market has now done the minimum and going forward the game is a lot trickier.
  • In a vacuum Premier Wen's statement is bullish for the longer term value of treasuries. He is speaking up for the owners of the asset class. That said, I still have no interest in owning treasuries at these prices.
  • Technology has been a laggard in the past week's rally. I believe the reason is that short sellers were not targeting technology shares, hence they are not benefiting much from short covering.
  • I have a busy weekend so the Weekly Strategy might not be up until Monday. Have a great weekend.

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