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The fuel is there–but where (and when) is the match?

It’s called fuel for the next rally. But it’s better first to think of the money piling up on the sidelines as water building pressure in a pipe. In the week that ended on Wednesday July 7 more money flowed into money market funds—and out of other financial assets...

So when are stocks cheap enough to buy?

Are stocks cheap now? That’s the question that investors inevitably ask after a drop like the one we’ve seen since the Standard & Poor’s 500 Stock Index hit a high at 1217 on April 23. From that high through the close on July 2 the index dropped almost 16%....

Bullish or bearish? It depends on …

Question: Jim, are you bullish or bearish? Answer: It depends on what time period we’re talking about. In the very short-term, say the next 4 to 6 weeks, I’m bullish. I think the market is gradually inching its way higher after breaking through resistance at 1108 on...

Is this the Son of Bounce?

Here’s one read of the stock market action of the last two days. Essentially what we’re seeing today and what we saw on Tuesday, June 8, is a resumption of the bounce that was demolished by the horribly disappointing U.S. jobs report on Friday, June 4. Before those...

The rising level of pessimism is making me optimistic

I love these poll results from Bloomberg. If you’re a contrarian, you’ll be licking your chops. The pessimism about the global economy is so thick you can cut it with a spoon. And so many investors say they’re shunning emerging stock markets such as China, Brazil, and...

And what will Monday bring? Will the bottom hold?

Last week the thought was, maybe better say the hope was, that the stock market had some upside after it held above the lows of 1045 set by the Standard & Poor’s 500 stock index intraday on February 5. I don’t think that anybody was looking for an extended rally...

U.S. GDP revised lower but I think that's old news

We’ll see exactly what the fear level is today when U.S. stocks get a chance to react to this morning’s revision of first quarter U.S. GDP growth. Economists had projected that the Bureau of Economic Analysis would raise its estimate on first quarter GDP on its first...

Yes, the problem was computerized program trades

This from Bloomberg tonight (May 6): “Computerized trades sent to electronic networks turned an orderly decline into a rout, according to Larry Leibowitz, the chief operating officer of NYSE Euronext. While the first half of the Dow’s plunge probably reflected...