The NQ100 reflects the continued pricing in tech stocks with a general perception the values in tech provide the least risk in case the growing number of market bears are correct about the length and depth of the current recession. The bears are not without the daily bad news bites to point to as evidence of the darkening investment sky. Barry Ritholtz provides daily graphs and charts to make his case that the current upward bias is merely a bull trap.
Making a case for any directional trend has to be a bit tougher on the bulls these days. Nearly every sector of the economy is strained by the debt market's readjustments. Simply being a contrarian is weak. But so is the bear's claim that rests on a notion all will be revealed over time. The bulls ally oddly enough is living in the commodity markets. There is still lots of money looking for something to chase and commodities are a perfect example of the lunacy of managers willing to pursue returns in markets with bull side stories. Until the velocity with which those speculative dollars is reversed, the stock bears will be pushing on a string. A commodity market collapse is the missing element the stock market bears need to get all points heading south. Falling housing prices, falling hard assets, and declining stocks is something everyone understands.
