Listening to the News

Friday was fascinating, pure advertising.

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SPY daily, credit Effective Volume

Another day on Wall Street when the S and P 500 reaches new highs. This message is broadcast to millions in their cars, driving their lonely roads to work and and back. The underlying message is “come buy US equities there is room for more growth.” There remain many late-comers to this market, and this is more than a dog-whistle at this point. Meanwhile, it seems to me that the big players are going to load up on banks (higher interest rates) and emerging markets (cheaper relative to the US market). New-high rallies provide good opportunities to unload stock (see the chart above) with the intention of buying the dip again later.

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Sometimes the joke isn’t very funny

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