Friday, 5 March 2010

Today's NFP: too much optimism already baked in?

This recently captured chart showing the very high percentage of S&P 500 stocks which are trading above their 20 day simple moving average suggests that, to apply the Keynesian notion of perceptions regarding the judging of beauty contests, the markets may well have already discounted the fact that average opinion regarding how the average investor will regard the data, is very favorable.

Could we be setting up for a buy the rumor and sell the news event?

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