Last Week’s Stock Market Advance Had a Lot of Holes in It. So, a Near-Term Pullback Could Be in the Cards.

We are afraid that we have to go to another wedding next weekend…and we’ll be traveling further this time. Therefore, we will be out next Friday…and thus there will be no weekend piece next weekend. However, if the level of volatility in the markets jump next week, we may send out an abbreviated piece Thursday evening. Thank you very much.

Table of Contents:

1) Last week’s action actually raised the odds that a near-term pullback will take place soon.

2) The Treasury market seemed to take the Fed’s less dovish rhetoric seriously last week.

3) Signs that liquidity will be less plentiful going forward.

4) The credit issues don’t have to reach 2007 levels to become a problem.

5) Any near-term pullback will need to be a very big one to become a longer-term problem.

6) Checking in on the charts of the major averages.

7) The home construction stocks are very close to a critical support level.

8) European stock have been underperforming on the way up, but they could actually decline soon.

9) Potpourri…..Bill Gates’s comments last week were very telling.

10) Summary of our current stance.