23 October 2013

SP 500 and NDX Futures Daily Charts - The Magic Mountain

"There are so many different kinds of stupidity, and cleverness is one of the worst."

Thomas Mann, The Magic Mountain

"All for ourselves, and nothing for other people, seems, in every age of the world, to have been the vile maxim of the masters of mankind."

Adam Smith

Stocks pulled back a little today, in the face of weak economic news. Import and export prices came in a little on the high side.

Corporate earnings in the virtual realms remain rather good. The real economy story, not so much.

Stocks have gone almost parabolic, and deserve some time to rest. If we see a trend break it may turn bearish, but for now equities are rising on the Fed's balance sheet, light volumes, and lack of an event that might trigger selling.

If some event does hit, stocks will have the resiliencies of meringue. But that is a big 'if.'