Right now fundamentals are driving the game and, in my opinion, overshadowing the technical analysis. On a weekly chart, the S&P500 sure looks likes like its starting a pattern of higher lows and lower lows.

Sure things look undervalued right now but are you buying? Really, are you buying?

Tom, other than the fundamental issues that you mention (and everyone already knows about) why exactly do you think the major trend has changed? Mind you, I’m not saying you’re wrong. I don’t know that. I’m just curious about your thinking process.

I think you’re misreading the market, the trend is (has) changing. We won’t see a sustained rally until we burn off the liquidity and internal market problems related to subprime and debt. The Fed is throwing money at the problem but its not working. The US consumer is finally tapped out and when they don’t spend, well you know the rest.

I’ve been in mostly cash and bonds since mid December ‘07 and on days like this I’m glad I’m out.