Interesting that the market is down with the big rally in chinese stocks overnight but not surprising as we are starting to focus more on upcoming earnings and what happens next year, not just pushing the market up because its the end of the year. Bond yields remain the most important thing right now. This as I've said a million times is a grind market and don't think it will change at all for a long time to come. There is going to be some whopper rallies and whopper sell offs up and down, going nowhere in the end. Think we could see some more upside but if the market is smart it won't rally much to make for a better year next. I was short going into this morning and just flipped to long when my "profit stops" at 4047 were hit.
Personally I think thoughts are changing about china more and more as companies leave there and go other places for manufacturing as the world realizes more and more that we need to take back control and use friendlier countries to deal with. The chinese experiment was that they would move away from communism years back when everyone used them for manufacturing but now that more and more things become realized that they aren't really our friends, more and more companies are leaving. Gonna be interesting next year. That's another thing I think will be interesting as the everything bubble continues to implode next year as people adjust to a more normal lifestyle because interest rates are too high to buy toys now.
