Happy Times

No major changes in the markets. Stock market up on light volume. 2010 appears like it wants to continue where 2009 left off. Doesn't matter that the market is trading at a lofty 20x 10yr average earnings multiple.

The markets are typically in January. The market was rebounding strong in 2008 until January 5th before it started spiraling down to its depth of March lows.

The market to me seems poised for at least a mini correction (5%ish plus) with some divergences but we may have a few more up days to go on the upside. Interesting alot of the REITS were down today even as banks were up strongly. The financials have been holding the markets back. If they get going than we may be on our way to 1200 fairly quickly.

Right now everyone is happy in the world. Insolvency surrounded by tons of liquidity. The bullish sentiment is at extremes but that can continue for several months.