This rally in S&P has been nice. Its especially nice if you faded the WSJ and NYTimes bearish news columns which were permeating the land between Christmas and the first week of January. If you go back and read my entries, I suggested fading this bearishness.
Alas, now that the S&P is 11.58 rallied up to 13.54, almost 200 handles in 9 weeks. That, my friends, is un sustainable. And now we are starting to see the dow challenge the “next big round number” at 13,000.
Looking at the S&P, though its been on a ridiculous rally if you go back to 1074 and the 1-1/2 year and a half low. Go back there and its a 283 handle rally. And not a peep from the “end of day’s crowd”. I am honestly just waiting for Obama to take credit for the rally. At that point, that will be the high, in my opinion.
Bottom line, its late in the day. If you’ve had longs on, by all means protect them.
I am not saying that a year higher we can’t be higher. We may be or may not be. But today, looking at this S&P, I’d be packing my parachute and heading towards the exit door.
That is all.
CER