Yesterday the market got most of the negatives holding it back solved.... Goldman Sachs, BP, and FinReg. Heck, even Apple resolved the issue with the iPhone4 today. So what happened other then a 200 point jump in the Dow? Oh wait, the market didn't even jump at all and had a nearly 3% drop. Huh? Were the earnings of Bank of America (BAC) and General Electric (GE) that horrible? Oh wait, they actually beat earnings and the news about the FinReg costs to BAC shouldn't have been that shocking. Consumer Confidence had a huge drop, but who was shocked by that? The markets saw a huge drop over the May/June peirod. What consumer could be confident?
Maybe today's huge drop was just a headfake from an overbought position. The news going forward will be bullish for a market run. Nothing to hold us back now and a lot of possible bullish moves by Obama and the Dems could be coming down the pipeline.
Next week will be interesting as everybody frets about the technicals of the SP500. Everybody is looking for lower lows to continue which means a drop to 1000 or lower on the SP500. The news doesn't suggest such a move, but we shall follow and make changes to our portfolios if the market doesn't hold.
Great clip from Cramer regarding the lifting of the clouds in the market.