Rosenberg: "We're All Chartisits Now"

The following is by David Rosenberg and posted on AdvisorAnalyst.com on July 28:

Rosenberg observes: "We're 142 days into the year; 52 days (or 37%) have seen 1% or greater moves, and yet the S&P 500 is flat as a beavers tail on the year. This is starting to get interesting. The market gets it wrong as often as it gets it right - it was wrong to forecast a recession in the Fall of 1987, again in the Summer of 1998, and again in the Winter of 2003. It was wrong to forecast sustained growth in the Summer of 2000, a recovery in the Winter of 2002, an avoidance of recession in the Fall of 2007, and the end of the downturn in the Spring 0f 2008. The market may be a discounting mechanism, but it has a spotty record. On the back of solid Q2 earnings, the technical picture has improved. It's getting interesting, but I'm wondering about the efficacy of maintaining a bullish stance now after a 10% rally that is possibly about to meet resistance, and a rally that is devoid of volume, which is any equity market rally's vital backstop, and devoid of validaton from the bond market."

I quick look at the markets shows North American indices to be in the green on the back of solid coroporate earnings, including Canadian blue chips Barrick, Thomson Reuters, and Potash.

GB