"When misguided public opinion honors what is despicable and despises what is honorable, punishes virtue and rewards vice, encourages what is harmful and discourages what is useful, applauds falsehood and smothers truth under indifference or insult, a nation turns its back on progress and can be restored only by the terrible lessons of catastrophe." … Frederic Bastiat
Evil talks about tolerance only when it’s weak. When it gains the upper hand, its vanity always requires the destruction of the good and the innocent, because the example of good and innocent lives is an ongoing witness against it. So it always has been. So it always will be. And America has no special immunity to becoming an enemy of its own founding beliefs about human freedom, human dignity, the limited power of the state, and the sovereignty of God. – Archbishop Chaput
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Happy New Year Dan.
ReplyDeleteHi Dan, best wishes for 2012.
ReplyDeleteSome favorable economic news to think about.
ReplyDeleterail traffic shows strong economy:
http://pragcap.com/rail-traffic-shows-continued-economic-expansion
I can't find the link, but I've also read that hotel occupancy rates are at record highs, and restaurant sales are at pre-recession levels. Also, Chinese 'official' PMI reading came in at 50.3, on 49 consensus. Asia should open strong, and should carry over to Tuesday market open pushing S&P right back to 1165 resistance, and probable break on the upside.
http://english.cri.cn/6826/2012/01/01/189s674151.htm
The bulls are going to push it higher, and I can see a breakout to 1300 on the S&P with risk on back in favor. If S&P surprises with a one notch downgrade of France, and banks continue to deploy that fresh ECB cash, things could heat up very quickly to the upside after an initial selloff.
Don't forget U.S. and China both on political election cycles. Will be looking to push things higher at all expense. Now I know things can change fast, but that's how I see it right now.
My trading bias is bullish through Wednesday, then out before S&P Friday. Then back with a bullish bias once it looks like risk on is back in favor, and EU can get those 10 year yields down (which means UST 10 year yields gong UP).