Wednesday, January 18, 2012

Goldman Sachs Earnings

imageWoohoo!  $GS Goldman Sachs earnings less dreary than expected!  If that isn’t  reason to drive the Nasdaq higher, what is?  The Nasdaq led the market today, with an improving sentiment in housing combined with the $GS earnings.  “We started off on a positive footing because certain financial earnings weren’t as bad as investors had feared, but most of the uptick came from home-builders’ confidence reaching a level not seen since 2007. Now we have two areas, jobs and housing, which are critical foundations, and both are seeing signs of improvement.” - Jack Ablin, chief investment officer at Harris Private Bank in Chicago.

The continuing theme of slow growth, uh, continues.  There really was no reason to fear a recession.  It appears as if there were a lot of folks leaning the wrong way.  We are seeing a pick up in most all of the economic data, but not at a rate that is going to make the Fed jump in and kill it.

Meanwhile, the Black Box sell signal has a bit of egg on its face so far.  Which is why I don’t follow it as a mechanical system. Still, it usually isn’t wrong – and when it is wrong, it’s not by much.  It is still at a point where a whoosh down would create a second sell signal.  It’s not unprecedented to see consecutive sell or buy signals within a few percent of each other, as the market reaches overbought or oversold levels.

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