Submitted by Mark Hanna
Courtesy of MarketMontage. View original post here.
Today is Warren Buffet-palooza day on CNBC and I’d encourage those who are newbies (or veterans) to the market to take a listen to his interviews as he always has a lot of interesting things to say, even if he manages investments in a way that is (nowadays) contrary to the majority. CNBC videos can be found here, but I embedded his introductory comments below. You will actually hear a lot of similar thoughts on Europe and the U.S. situations to what I have outlined in recent interviews.
14 minute video – email readers will need to come to site
As for the market futures are down some this morning, but well off the worst levels seen overnight as Spanish and German markets have turned green. Despite a lot of hand wringing over European elections, the results in France were not a surprise to anyone and how a politician governs versus how they campaign are two different things… Greece is probably more of a mess but we’ll see how it all plays out. Bigger picture, U.S. markets – after failing the follow through day scenario last week – remain under distribution but are apt to snap back rallies within the context of said distribution. The S&P 500 did break through the lows of the past month at 1357 in the overnight session but have recovered to get back into “the box” of upper 1350s to low 1390s. Things have become more herky jerky in markets since early March, and it would be no surprise to see that continue or accelerate. The largest bounces often happen in downtrends.
Economic data is going to lighten up dramatically this week but a lot of Fed talk and the market should begin demanding assistance on every selloff from here. We know how this cycle works – the demand for pacifiers should begin to hockey stock with each drop in equities go forward. Earnings season is on its last legs, but some high profile names such as Priceline (PCLN) remain. The next few weeks should focus on the demands for new rounds of central bankers assistance, and Europe.
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Any securities mentioned on this page are not held by the author in his personal portfolio. Securities mentioned may or may not be held by the author in the mutual fund he manages, the Paladin Long Short Fund (PALFX). For a list of the aforementioned fund’s holdings at the end of the prior quarter, visit the Paladin Funds website at http://www.paladinfunds.com/holdings/blog
