Stocks Window Dressing or what ?
First quarter of the year is nearly over. Here comes the part Window Dressing ! Fund managers, Hedge funds, and miscellaneous investors on wall street are invigorating their windows by selling off some the stocks and buying some which have fallen by the way side. The quarter should look very good because the stock market has such a wonderful run so far this year.
The pull back seen today is just that. It is not a sell off, but to lock profits and gains and show to the world how nicely we have done. You wont find any thing on financial sites why this happens, but it happens and there is no reason for the bears to start celebrating. There is no food available yet.
Meanwhile some good news on the economy. We are getting better at jobs numbers these days. CEOs are willing to hire more and things are looking good. The stock market knows that and as long there are improvements in the economy its only going one place and that is up.
Word of caution: IF we see SPX breaking down below on 1400 and with heavier volumes I would open both my eyes, but till than its time chill and take it easy. Don’t go erecting trades just yet, they may fall flat.