chris fords rambo friday - 11/11/11, page-110

I made this point the other day after an ordinary (ie down) night on the Dow, that the market was reacting less negatively to bad news than it had in August or September.

Again, this week, we were faced with the Daddy of all defaults in Italy, a headless chicken Greece and a probable zero growth Europe for the next 2 years, and yet the XJO managed to close 15 points higher for the week.

I know, sometimes, it is difficult to see the wood for the trees, but I truly do now think there is a real disconnect here between the utter negativity of the news (frankly dreadful this week) and the actual action of the overall market. In a nutshell, we are brushing off bad news, and although the charts could easily say something else (ref Martis!!) this single undeniable fact is staring us in the face.

I will cautiously, ring the bell and say, " the market has factored in Armageddon and is now a buy