We’ve been out (golf trip) and totally unplugged for the past few days and come back to yesterday’s major reversal in Apple (see chart) and a big flip in the polls in favor of Governor Romney. Equities are selling off and approaching short term trend support with the Nasdaq already breaking its 50-day moving average.
We are in watching mode. The growth fundamentals stink but the power of zero (interest rates) and the printing presses are keeping equities buoyant, which makes the technicals that much more important. As one of our old bosses, who will be portrayed in Michael Lewis’ new movie, Liar’s Poker, use to say, “I don’t like being long when the fundamentals aren’t there. The bottom can fall out.”
We are also watching the presidential polls carefully as markets may begin to internalize the momentum moving in favor of Romney, which could spark a decent rally into the election. Stay tuned.
(click here if charts are not observable)