After reading Jason Zweig’s article this weekend in The Wall Street Journal on “conformation bias” I wanted to provide to you a clue to monitor the current market rally. With today’s gallop higher,
the market is pricing in not only an economic recovery, but a substantial recovery in corporate profits and revenue growth in 2010. While we are skeptical of current valuations, I thought I would
provide some insights into the non-confirmation thesis of this recent move higher.
There are several indicators to monitor in this regard, from The Dow Transports non-confirmation of …