Frank T.J. Mackey says...

“…Respect the Market”

Low volumes, main stream media cheerleading, data manipulation, these figures aren’t actually good, this is all going to end in tears. V shaped, U shaped, L shaped. Whatever you want to say or believe, this market only knows one way at the moment and it isn’t South.

A better set of numbers today, PI up (although saving at its highest level since the data series began in ’59). ISM a touch ahead too. The beat coming from prices paid. These two adding fuel to the inflation fire and we’ve seen treasuries sell off since. To be fair, order backlog and new orders increased. But then to be equally fair, they’re still below 50, so not growing.

Macro Man noted there’s a good chance of the market closing above the 200 DMA today. What next. Well everything that has traded through it’s 200 DMA of late has carried on storming through. I would bet against equities doing the same. That’s not to say that I don’t agree with a lot of what’s in the first paragraph or the caveats of the second…I’m just cognisant of the (admittedly adapted) words of Frank.