January 22, 2012
Weekly Market Outlook
By Keith Schneider
Despite Google's (GOOG) 50 + point decline and Apple's (AAPL) 3 % drop from Thursdays intra-day highs, the NASDQ 100 ( QQQ) closed on a new weekly high not seen since the market crash in 2008. Economists, Elliot Wavers and most cycle ologists have been confounded by this rally caused by good economic numbers in the US and the ability of the Eurozone to avert a sovereign debt default. Unlike the cruise ship captain who abandoned ship, those who remain steadfast are drowning with short positions.
So whether one attributes this rally to the Plunge Protection Team run amok (someone at the FED forgot to turn off the buy program), a rogue wave, or just a plain vanilla “wall of worry” rally, the old adage of don’t fight the tape still rings true. Long term rates rose this week, as TBT, the leveraged bet on rising interest, rose almost 7%. Will the market sputter right here or continue up and force the diehard shorts to cover before the big kahuna down; or is this rally the real deal? Check out this week’s video as we are at levels not seen for quite some time!
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