We are still in a market correction according to Investor's Business Daily. Lately, the up days we have been have been on low volume. Options expiration is tomorrow so look for increased volitaility and wild price swings throughout the day. These low volume days tell us money is not coming into the market and as always, in America, you must follow the money.
I have no opinion on the market in general. Partly because the action I am seeing in the market doesn't make sense. The economy isn't in the best shape, earnings are coming in very poor, especially in retail, the jobless claims numbers are coming in higher than expected, bankruptcies are up. The Federal Reserve chairperson is lowering the public's expectations of a rebound, but yet the market continues to hold up. The one issue that really has me scratching my head is: PMI was up big today, while at the same time foreclosures are hitting all time highs. If someone can leave a comment solving that riddle for me, I would really appreciate it.
Insiders are dumping 300 shares for every 1 share they are buying. They are using this rally to get rid of their shares. This can be seen in the secondary offerings that we are seeing. I worry that the pattern we are seeing is the same pattern we say in 1929. They had a big rally and then 2 years later, the real crash came. Retail sales are still falling despite this 'cash for clunkers'. There is one dealer in New Hampshire that had to file for bankruptcy because he could not get paid by the government.