Commentary

As professional smart money continues to chase the market, the opportunity to trade some high volatility-weak fundamental stocks that move with momentum trading has been fantastic. The near term economic growth will likely be supported by inventory liquidation and the ongoing fiscal stimulus, but a sustained recovery will need jobs creation. The equity market resilience, (disconnect) from disappointing economic news has been impressive, but a real economic recovery will be a requirement for the equity markets to continue to move higher. Team Obama-been-lying, will provide plenty of headwinds to the financial markets in the form of more regulation and higher taxes; for now I am accumulating short positions in financials and energy. (FAZ, ERY)