Jeff Saut very good this week.
In conclusion, we find it interesting that when President Obama took office, vehemently voicing his three major tenets of “Healthcare,” “Cap and Trade” and “Card Check,” the equity markets experienced a mini-crash. However, when he began “softening” his approach to those tenets the equity markets have rallied. Our sense is all three tenets will fail in their current form; and that, ladies and gentlemen, is one of the reasons the equity markets have rallied over the past few weeks. Our hunch is the SPX will now “rest,” oscillating between 940 and 980 as the overbought condition is worked off and our indicators reenergize themselves, and then rallies again toward our long-standing target of 1050.i woul add to Jeff's observation that fact that this week all the talk is congressional limitations on speculation and guess what? The market advance stopped.