Dow again

dow feb 27 2018

We did not expect a 400 point increase yesterday. Clearly we got the count wrong. Having said that we are not (yet) prepared to accept that, once again for the so many-th time, we are going to a new high. Typically an extreme correction would retrace about 76% of the preceding fall, in this case that would be at about 25834.

Today we have the new Fed president talking and also Yellen and Bernanke. If they all use the same song sheet, essentially the same one Greenspan used, we can hope for another 4 years of the same to add to the 20 or so already past. However if there is a false note things can change rapidly.

Always keep in mind Greenspan’s words of wisdom;       I guess I should warn you, if I turn out to be particularly clear, you’ve probably misunderstood what I’ve said.      …. which should apply to all four of them. And, by the way, Greenspan just Friday argued that now BOTH the bond and stock markets are in a bubble!!!! and he is a republican.