China's official purchasing managers' index (PMI) eased to 50.4 in January, the National Bureau of Statistics said on Friday, missing market expectations for a rise and underscoring the fragility of the recovery from the economy's weakest year since 1999.
So, Chinese data is mixed. The US GDP was in the red in the 4th quarter of 2012. Mixed data all around…
But 2013 is shaping up as anything but a typical year, and market bulls depending on this trend do so in the face of a slew of obstacles against such dramatic moves higher.
You know, this is the third trip up over 1500 for the SP500. Maybe too many folks are expecting the secular bear market to continue. The 2000-3 and 2007-9 bear markets crushed a lot of investors, and may be setting the tone here in 2013 as we approach previous market highs.
$$ – Everyone is expecting a market crash these days. Marc Faber at the plate!
“When you print money, the money doesn’t flow evenly into an economy. It flows to some people or to sectors first, and in this case, it flowed into equities, and until about five months ago, bonds,” Faber said. “I believe that markets will punish central banks at some stage through an accident.”
By the way, historically February isn’t a good month after the election year.
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The market looks tired. And acts tired. It is the monthly strength period. The market came in to this week overbought and now looks toppy. It could be the pause that refreshes, but January has been about a 7% rip. I'd expect a little cooling before the next advance.
Anyway, not doing much about it. 100% long. Still.
The first bounce or so was met with optimism, but less and less as the failed attempts went to lower prices and then to a slower-growth earnings report last week.
Along the way, we've heard from folks who think that Apple is a buy and that valuations are ridiculous for the company that has more cash on the sidelines than they know what to do with and continues to sell iPhones and iPads faster than they can make them.
Although, have you noticed how you can buy Apple products almost anywhere these days? Reminds me of Krispy Kreme donuts in their heyday. From exclusivity to every sales counter in town. Those were some tasty donuts in their day.
My thoughts? If AAPL can't rally when everyone is bullish, what happens when the eventual overall market correction happens? I think the company needs a positive surprise, in either growth, innovation, or both.
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