Wednesday, September 22, 2010

Distribution Wednesday (and Bikini with a Sarong!)

image Well, yesterday there was slight distribution and today even more.  So unless there is a big rally to close out the day, we are looking at a pullback in the market.

It’s been a nice run.  We are due for a pullback. 

However, we are still in September and October is next.  The market has a history of a significant correction in the mid-term election year, followed by a big rally.  We did see a correction from spring into the summer, with the SP500 finding a low (and so far buyable) in the 1030-1050 range.

Will the pullback revisit the 1030-1050 range?  Exceed that?  My best guess is that a pullback won’t be more than a few percent.  But there may be some worries ahead of earnings season.  I think things are better than we’re reading in the headlines, but that hasn’t helped anyone find a job yet.  The current uneasiness about taxes and health care costs could be weighing on hiring decisions.

***

Remember, it is now fall.  So if you’re out at the beach, make sure you have a sarong to keep you warm if the weather chills a bit.

Home sick again.  But feeling much better today. 

It is good that I’m not at work making big decisions.  I went to pour some Rice Milk over my Cheerios, and grabbed the box of chicken broth instead.  Whoa, salty. 

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