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-- union address next week joining -- Najaf south cheap investment classes.
At Raymond james' death glad that you hear a lot of people say in this market's overbought and -- -- and -- now hold out here come state in the union watch out below.
Well the market is overbought it's overbought by a number of finger to -- ratios the percentage of stocks above their fifty day moving average is about is many as you ever see that's overbought.
The New York Stock Exchange -- hostile later is overbought.
And yet in I don't think you gonna get a big let down right here I think the markets are gonna shake off this little weakness we got today or tomorrow and try.
To confirm the transportation.
Average which broke out to new all time highs mid month.
Last month and I think the Dow is gonna trying confirm that with a new all time high end to the state of the union.
Which I think it's gonna be viewed negatively by the markets and at that point I think you're subject to a five to 7% pull that.
Well Jeff you know ironically here we for the first time in awhile had some negative headlines -- -- Europe the politics looking rather messy and it's alien.
And Spain as well Palmer and here we are down -- 122 points -- you can send.
Of the impact of Europe comes back with a -- negative headlines in the media.
I know Europe is going to be an ongoing problem you saw that they Euro quake were disappeared from the media's lexicon for awhile.
It surfaced again this weekend but it's -- same thing I've been saying actually for the past two years that politicians.
Bureaucrats and bankers are the same in Europe as they are inside the DC -- They do not want to lose their jobs and if the EU and clothes they all lose their job so they're gonna continue to paper over this thing and -- and buy more time now.
So -- -- -- back here at home let's -- to play this out for people.
-- union comes market falls upsetting recommends shopping list of things to buy when it does.
Yeah I think I think that's a real good strategy we've been fairly constructive I came in.
Fact -- got into a slight argument with one of the anchors here.
Coming into the fiscal -- talking about Armageddon and I IA -- -- that it was not going to be Armageddon that I lived inside the beltway.
And when push comes to shove the boys and girls typically come together and I think they're gonna do the same thing on the on the upcoming debt ceiling in the sequestration.
So if we do have this pull back up to the state of the union Jeff what sectors all stops in particular deal like.
I actually like all the sectors except the consumer Staples from a lot of portfolio managers professional money has been hiding out in the consumer Staples.
Because they were worried about the upcoming election the fiscal cliff.
The debt ceiling China slowing you name -- dis functional government.
And now I don't think it's becoming more apparent that -- -- functional government has become just a little bit less dis functional.
I think investors are gonna have to start looking at the fundamentals I think the fundamentals what the housing situation.
The automobile strength I think it's gonna come to the four.
I don't -- write checks out Raymond James thank you very much there.
You bet that -- as -- in the housing is healthy in the automobile industry is healthy it's always a good sign for a solid recovery and.