September "That's not Happiness to see me"
Getting ready for Fast Money on Tuesday September 1st meant preparing for the litany of bearish guests who would be appearing on a critically important technical breakdown day in the market. The lineup included Peter Schiff, David Rosenberg, and Nouriel Roubini, none of whom have seen "eye to eye" with me this year. Makes me wonder if I was being set up. Generally, after a strong performing month such as August, the first day of the following month is highlighted by asset allocation, or "money flow." Capital is deployed on that day, based on the positive performance of the previous month. Not this day; rather, it was a reminder of the great line in the movie "A Perfect Murder" between Gwyneth Paltrow and Michael Douglas, "That's not happiness to see me." After Tuesday, the bearish crowd will jump back on top of their economic soapboxes and proclaim "you see, we told you so." Not so fast, boys. I view yesterday as a technical breakdown, with no change to the fundamentally improving world. The market was exhausted and could no longer advance on good news. The worst is behind us, not ahead of us, contrary to what I was told again last night. Going forward, unemployment comes Friday. After that, it is the boxer mentality - just take the jabs of September and October, just survive, and stay on your feet Mr. Market. Surviving the jabs of September and October positions the market for an end-of-year rally.
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