The collision of global markets and social mood

Thursday, July 24, 2014

Media Wars, Hidden Weakness, The Summer Of 1975, And Why Higher Prices Are Still Possible

A quick example why it's important to check the Drudge Report: it consistently leans with the trend and often can mark the end of an intermediate one.

Drudge infers endless rally:

While Marketwatch adds the all-important caveat:

Even Jane Fonda jumped in the media war ring today. Jane Fonda on Rupert Murdoch Buying Time Warner: ‘It Would Be a Catastrophe’

The context here is that she feels it would be a political catastrophe. Let's face it, Jane's a lefty and Rupert, the owner of Fox news, is something of a righty.

However, the Freudian or unintended aspect of her statement is telling: Murdoch's bid for Time Warner may, along with the upcoming Alibaba IPO, signal the peak in the peculiar brand of social mood that has developed during this long rally.

A/Ds closed at a tepid 1.33:1 yesterday with the S&P at record highs. Weak. Volume was 15% lighter than the July 17th downdraft. Weak. Caterpillar, a real company with global exposure as opposed some of the junk masquerading as public companies, reported falling revenues. Weak.

Regardless, higher prices are possible. Yesterday's call for a possible 1970 may be a bit deep at this point, with 1975 looking like the better area, but as long as 1965.77 holds, odds are still higher.

Ah, 1975. what an explosion of great music in a kaleidoscope of styles. Walk This Way by Aerosmith, I'm Not In Love by 10cc, That's The Way (I Like It) by KC & The Sunshine Band, Fame by David Bowie, Love To Love You Baby by Donna Summer, You Sexy Thing by Hot Chocolate. The mere thought of any of these tunes conjures up memories of any one of several hot babysitters in my "stable" at that time, haha.

Here's one of their universal faves -- the corniest of the lot.

Love Will Keep Us Together by Captain & Tennille on Grooveshark
Oh, the irony. According to TMZ, Tennille filed for divorce from the Captain on January 16, 2014, after 39 years of marriage.

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