New High Perception

If you've been a bear recently due to higher oil prices, expectations for weak consumer spending, the housing bubble, slower growth, and hyperinflation, do you now see the market setting new highs and decide to change your view? Answer this question honestly and you may surprised at the answer you give.

Remember, the stock market moves on perception, not reality. Whether we like it or not, that perception is based on what the market is actually doing, not what we think it should do.

If you have been monitoring the weekly money inflow/outflow data there is something that even the bears must loose sleep at night over other than just the soft-landing talk. There is a lot of money sitting on the sidelines (yes, I'm included in that group) and it wants and really needs to find the best return possible. Because investors always chase performance (that's a consistent factor you can count on), new highs in the market WILL change the attitudes of many especially if this persistent uptick continues during one of the worst seasonal periods for the market.

As for me, I'm sitting on my hands and watching a few stocks, but doing very little. For the most part, most of the watchlist stocks aren't providing ideal entries so I have to stay passive amid all of the hoopla. See you after the closing bell.