The Twitter IPO looms over the market action as well as the real economy, and I have a sneaking hunch that the Street will support stocks until Twitter gets shoved out the door tomorrow, and perhaps for a few days after. As you have probably heard it is coming out on the higher side of $26 per share. Let's see how it does in the market.
I am not in stocks here, but am fighting an urge to get something going on the short side until we get a better idea if they can keep this pig in makeup for the year end ramp at least. Twitter may give us some insight.
This market is built on a foundation of meringue, supplied by those little elves at the Fed, who are pumping huge sums to Wall Street while Main Street languishes with little excess buying power and a floundering median wage.
While the Fed does not control fiscal policy, they have a huge amount of leverage as a primary bank regulator that they are not using well.
Have a pleasant evening.