By now you realize the markets have a mind of their own. They climb walls of worry, and tank on positive news. There has been much negative news lately, both at home and abroad, and yet the market has had one of its best months in recent memory. Here at EconIntersect we follow the charts, read all the economy data, follow government reports, and try to figure out where the markets will be in 6 months. If the future looks bright we are willing to take more aggressive moves short term. We may even take aggressive short moves if data shows a down side. Right now the data is showing a sideways trend for the economy, not necessarily for the market. You would think they go hand in hand but many times they diverge.
Some people even say there is manipulation. Consider the silver market. Recently, the metal was very hot until the margin requirement was raised a few times in a weeks time. And then there is sentiment. No matter what the fundamentals, people do strange things when they are scared and there are many reasons to be worried now. We believe sentiment pretty much trumps everything.
At the moment we are in cash, waiting to start buying the metals and our other favorite stocks. This should happen very soon. It seems the markets want to go higher heading towards the New Year.
Here is the recent chart for the Dow.
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