Tuesday, May 27, 2008
Bull Bear Notions
DJI is approximately 155 days and 11% off it's all time high with bears insisting current value does not reflect the magnitude of economic distress prevailing today.The usual bull market salesman who frequent cable market news channels are quieter these days, but like the bear extremism of late, both use index prices too often as direct indicators of total economic activity. Dollars spinning around in the speculation and investment in market indexes represent notions of value many times outside daily economic readings. The bears are obviously disappointed the DJI, SP500, and NQ100 are not hovering slightly above zero just as the bulls are frustrated with their inability to achieve values from contrived formulas projecting ridiculous upside targets. The bears need to stop looking for a crash and the bulls need to learn how to trade.