Does the market seem boring to you? Stuck? Trapped? Ya know, there may be a good reason for that. Here’s the two year change for the Dow Jones Composite………….ZERO.
Like I said just last week……….
It’s always a good morning to see equity bulls get torched. We’re only an hour into the day, but so far, so good – – -the only good bull is a disappointed one, so watching the ES plunge from a huge green open to slipping swiftly puts a smile on my face and a stride in my step. I won’t be fully happy until the Dow is at 6,000 again. Bring on the red, Fred.
Anyway, it won’t really matter until and unless the ES breaks 2100. It’s as simple as that. We’ve broken the key trendline weeks ago, which is great, but as it is now, the Powers That Be are trying desperately to prop things up for President Wide Load, so we probably won’t see real price discovery until she wins on November 8th.
I covered Ameriprise for a nice profit this morning, as it has touched its supporting trendline. I suspect this same trendline will eventually be broken, but I’d rather try to re-load the short at a higher price. (I should note that since I’ve posted this chart, the chart has sunk beneath the trendline, so I’ll probably wish I’d just stay short in perpetuity!)
Let us all bask for a moment in the ever present glow of Procter & Gamble, which must be one of the most incredible stocks of all time. In this frothy market of ours, this maker of laundry soaps and dishwashing liquid sports a P/E of about 25, which back in the day was the sort of level reserved for high-tech companies. Anyway, the great crashes of the past few decades are hardly blips in the ascent of this monster.