No more Lewinsky?The tailwind from Orient this morning did not carry Dow up very much , with 12187 may be near today’s upper limit. 12187 surpassed yesterday’s high and is about the mid-point of 031307.Nevertheless I still think there is quite bit of pent-up demand, which may be of short-coverers and bargain hurters. I definitely felt that, myself being on short AM. Incidentally, Citadel, the hedge fund I talked about in my previous post, is also one of MMs on the stock I shorted. Tomorrow’s CPI is a big deal. Clinton asked his buddy in Congress for support when facing impeachment vote, and his buddy asked back, “any more Lewinsky? If not, you got the deal”, something like that.I still think there is a lot of money hidden in safe heaven waiting for the right time to snap up stocks. Per Bloomburg.com, March is the month historically the biggest selling month of US treasuries by Japanese investors, who held about $648B in 012007, about twice of the Chinese holdings. Still, 10Y Treasury yield is almost all time low YTD, and USD/YEN still steady. That’s bullish for stocks.Tomorrow: If no Lewinski, stock may rally. If still Lewinski, but not too bad, stock may still go up, possibly, thinking CPI is the last Lewinski in near term. http://marketreflections.com/ for further info.
