Paper Tiger or a bull trap?
We push up through some levels of resistance now from 780-820 on the SP500 can we get to the next one at 880 than to 940 or will we consolidate here? There seems to be enough negative emotion and news coverage to give this rally legs. But the Bull trap could also be set for markets to make new lows. Oh the times we live in>
What is the next piece of news from Obama communist regime will it be a reason to rally or flop back on our backs? Ok that maybe a little harsh. But congress and the administration is looking at incenting consumers to purchase cars and truck which is a great idea and would have a greater impact on the industry than giving poorly run companies money, at least this would give the consumer a reason to buy. But the protectionists are taking a stand and trying to force congress to make another bone head decision, they want to only incent you to buy vehicles assembled in the USA hmm. Gut check how many GM, Ford, Chrysler cars and trucks are assembled in Mexico and Canada would they qualify or not how many Honda’s and Toyota’s are built in Tennessee? , My point being if we get into a trade war or even the notion of one watch out below this kind of news would pull the rug out from under this market
From an extreme view a professor once said to me “Either goods cross borders or Men with guns will”
Energy and commodities look like a base has formed, could be time to get long at least with some risk capital.
