On Thursday the markets experienced a light volume snap-back. Friday the markets had an opening gap lower which was quickly met with buying. All told, the S&P 500 (SPX) is just about right back to where it was at last Monday’s close. I used the recent weakness to put more cash to work. I am expecting more market gyrations to occur as the correction continues. Overall, January was a disappointing month but I would not extrapolate that month to the rest of 2014.
Yesterday, Super Bowl Sunday was a massive media event and day. It began with Groundhog Day festivities in Punxsutawney. Punxsutawney Phil predicts six more weeks of winter. (We are getting another winter storm today). Then news of the drug induced death of actor Philip Seymour Hoffman hit the world. Of course Hollywood is just mourning the “tragic death” of a “talented star.” My take is that he was just a heroin junkie who happened to be an actor. Let’s not adulate him but use his death as a teaching tool for society. Unfortunately, we still adulate John Belushi, Janis Joplin and Jimi Hendrix because of their talent but still have not learned from their death and in most circumstances have swept its cause under the carpet.
Then we got the big event, Super Bowl XLVIII, live from MetLife (MET) Stadium. Perhaps I should say the Super Bore. The weather cooperated but that only helped the 70,000 or so people in East Rutherford. The other billion or so viewers were not so lucky. The game was over by the first quarter and was the most lopsided victory since the 49ers clubbed the Broncos in Super Bowl XXIV, twenty four years ago. The commercials were very disappointing. The game was worse. The highlight of the evening was Bruno Mars who was fantastic and would have been perfect had not the Red Hot Chili Peppers appeared. Don’t get me wrong, I like some of their songs but the mix of Mars and RHCP was ill conceived. Most people around here want to know why, for a Super Bowl in NJ, with related activities held across the entire NY Metro area, did not have Bon Jovi, Bruce Springsteen or Bill Joel involved in the half-time show?
Raise your hand if you made it through the Super Bowl without using Twitter (TWTR) or Facebook (FB). Count my hand as raised. On Wednesday we will find out how Twitter fared in its first quarter as a public company.
Also this week, another sports spectacle, the Winter Olympics from Sochi, Russia will commence.
Today, auto manufacturers will report January sales. I expect there to be plenty of weather related impact on those figures. Overnight, index futures market indicated a green open only to have a wet blanket thrown over it by Chinese economic data. Normally, I would expect some beginning of the month cash to be put to work today. While that might be the case, it is likely that managers are a bit more patient with their buying as they try to finesse the correction.
Disclosure: At the time of this commentary Scott Rothbort, his family and/or clients of LakeView Asset Management, LLC had no positions in stocks mentioned — although positions can change at any time.
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