Wednesday, January 23, 2008
I am the walrus, goo goo ke choo.
I guess that was the reversal. Breadth never went positive so it was hard to close up on the day, but opening down 400 on DJIA and trading up to -50 was a pretty good rally. With the 2yr yield below SPX dividend yield, it is easy to make the case that stocks are cheap. Still in for a bumpy ride, but the trend will soon change and new highs will be in the cards for 2008. A close above 1400 SPX will be an all clear signal.