Not Too Hot, Not Too Cold...

... is the mantra repeated by most investors after the non-farm payroll data came out today. The increase of 108,000 jobs was a lot less the projected 200,000, but the upward revision from the previous month more than assuaged any "cold" fears. So the market promptly took its cue from this and proceeded to rally another 1% to above 1,285, thus overcoming the psychologically important resistance level of 1,277-1,280, at which hurdle it had stalled on several previous occasions in December of 2005. What's more, today's SPX gain brings the total gain from the first 4 trading days of the 2006 year to somewhere in the vicinity of 3% -- and, you know what they say: as the first few trading days in January go, so does the whole year... Hmm.. we'll see. At least I am well on track for my next "prediction" to come true -- that the SPX reaches 1,310 some time by March of 2006. From there on, I think we will see a substantial correction. I am afraid the goldilocks scenario for the U.S. economy might prove to be too good to be true, longer-term. Prepare for the worst and let's hope for the best, as they say.