Sunday, February 06, 2011

Stocks in the Year of the Rabbit

The Super Bowl is over, so let's take a look at the market as we race into the Year of the Rabbit.


Ooh lah lah.

The monthly strength period winds down as the paycheck money has been dollar-cost averaged into the stock market. Earnings season is still in play, but winding down a bit as many of the big names have reported. Oil prices are rising due to a rebounding economy domestically and internationally. Oh, and Egypt continues to be in the headlines as protestors continue to protest.

And I didn't even bring up the Glee special after the Super Bowl. (That's on as I type, and the Glee cast are all dressed up as monsters singing the Thriller song. Or some version of it).

February tends to be one of the weaker months of the year. Or, as I like to say, the tenth best month of the year on average.

This is where it may get a little interesting.

The bull trend is going strong, even though sentiment continues to be too bullish. But sentiment does that sometimes, and it can last longer than anyone thinks it's possible. At some point it will matter, but who's to say when that will be?

I reduced my beta in January but continue to be mostly long with a little cash.

A little less cash after the Steelers loss. Hey, I was moving on, right? On to the NBA and don't the pitchers and catchers report in MLB soon?

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