Time that the chinese got serious about taking a great leap forward with their economy. Now they meet saturday and with the weak numbers as the stars are aligned for the biggest stimulus package yet, the year of the monkey, i think theyll put more money to work than people think. China can turn, its done its before. Who know, maybe we will get some meaningful stimulus. At the very least the lousy chinese manufacturing numbers sure turned the stock market around over there which went from black, and as the session proceeded. Far more important, we have a shockingly dovish speech from bill dudley. Hes the new york fed president who caused a recent selloff by denying anything had gotten weaker since the rate hike. He set off a firestorm including here with yours truly when he said it was all systems go with the rate hikes because last night he gave a speech in china, on balance im less confident than i was before end quote about the economy. Part of this reflects my assessment that uncert
If youre long the right stock sos if you own them during six Straight Days of gains this rally is very much real and you are not questioning it. If youre in the wrong stocks or assuring the winners you would be asking the question is it real . Being wrong poses real risks like not being able to think straight. Being right, you know whats real and whats not because your head is clear. You thought it through. You recognized that youre buying whats cheap and can work at a lower dollar, inflation rate with the environment with the fed on hold and a crazy president ial election. Those who are on the wrong side dont have a lot of choices now. They can come in on top of a market thats worn from the february lows or wait for a pullback. They can question the reality of the move. In turn, i question their judgment. With the rally that lasts this questioning its veveracity. We are seeing a huge expansion with Health Care Stocks into cyclicals and industrials that will be very cheap in f the once
In verizon or att . Sat on the sidelines for the move in caterpillar . I say welcome to the club. The club that defines this market, especially on days like today where the dow sank 109 points, s p lost 1. 2 and the nasdaq plunged 1. 62 . Lets learn from these clues and see how we can spot similar runs in the future when the market is going down, not up like it did today. Take home depot. You know ive been recommending this ever since the show started 11 years ago. Periodically it sells often. When it does last thing people want to do is buy it. If you dont want to miss the next opportunity you have to be ready to buy it in two weeks. In the beginning of february home depot stock fell five straight days. It dropped from 126 to 111. Did anything happen during that its a severe decline. I went back to the news flow to check out everything that happened during that period. There was only one piece of serious relevant information that popped up as having any sort of report. They put out a
And nasdaq up 2. 89 . First, like many of the super bullish days its beginning before many wake up. We got news from overseas that pointed us this the path that could take us higher. What else is new . You could tell by the way its news from overseas that drives thing. If you go to bed at 11 00 p. M. When the futures arent doing much at all and you wake up at 3 00 a. M. And theyre flying, thats a sign that somewhere some place we got some good news at last. You can tweet me if you keep this schedule as i do and ill retweet you for certain. We got two pieces of good news from the same unlikely place china. First we learned that the chinese economy is worse than expected wait a minute. Manufacturing the lowest level in seven years which is the last time that the chinese got serious about taking a great leap forward with their economy. The weak numbers as the stars are aligned for the biggest stimulus package yet, the year of the monkey, i think theyll put more money to work than people t
And nasdaq up 2. 89 . First, like many of the super bullish days its beginning before many wake up. We got news from overseas that pointed us this the path that could take us higher. What else is new . You could tell by the way its news from overseas that drives thing. If you go to bed at 11 00 p. M. When the futures arent doing much at all and you wake up at 3 00 a. M. And theyre flying, thats a sign that somewhere some place we got some good news at last. You can tweet me if you keep this schedule as i do and ill retweet you for certain. We got two pieces of good news from the same unlikely place china. First we learned that the chinese economy is worse than expected wait a minute. Manufacturing the lowest level in seven years which is the last time that the chinese got serious about taking a great leap forward with their economy. Now they meet saturday and with the weak numbers as the stars stimulus package yet, the year of the monkey, i think theyll put more money to work than peop