I have known Rick Santelli for about 15 years. He’s a smart guy. Interesting that he had predicted an unemployment number today at 7.9… The number came in at 7.8.
Anyone over 30 with a pulse knows the much bandied about stat that “no sitting president has ever been re-elected with unemployment higher than 8%”.
Are your really surprised? I am an independent. Not particularly political person. I don’t really like the extremes on either side. I think life is too complicated to have simplistic black and white views.
That being said, I think bureaucrats are good at creating layers of bureaucracy. That generally makes things less efficient. I also realize that Government has the ability to do some necessary things. Bottom line, I just don’t think we need a nanny state, nor do I think we need to be living in the frontier days of the 1800’s where you were on your own completely. I think the helpless need help. But, like Dennis Miller, I am tired of being asked to support the people who game the system at the expense of the 92 percent who get up every day and try to build a better life for their family.
At the end of the day, the markets discount everything. The market is forward looking, while people and politicians spend most of their day looking back and sniping about “woulda, coulda, shoulda”.
Right now the Dow is at 13,557, Look at the chart. The chart is the graphic representation of what every person believes. If happy days are really here again, remember the song from the 1930’s? Then the Dow should have exploded through 13,600. Instead, 45 minutes after what should have been an screaming bull move, we sit.
I am not saying it can’t go higher. It might. However I am sticking to my opinion that you need to be short here the Dow and S&P. I’d risk 100 to 150 points. In fact, you may want to scale in selling into a 100 to 150 point rally.
The market is yawning. The market doesn’t really have political opinions. The markets trade fact/emotion combination. Fear and Greed are what motivate people. The other thing that motivates people is Ego.
I am cynical about this number. I want to fade it. Rachel Maddow, Chris Mathews, and the rest of MSNBC should put their money where there mouth is. IF they love this guy so much, and think we have turned the corner, then they should take their multi million dollar net worth and get long stocks.
They could then take all their profits and give it back to the DNC. They could have the best of both worlds.
Somehow, I doubt they are calling their Goldman Broker this morning.
CER