Beware of the Market Rally!

" Before we bust out the noise makers and the confetti let's bring in someone who was rather skeptical of this market rally. We -- back David -- from MarketWatch. You are skeptical were -- 9985. Right now you don't you don't really believe in down 10000 right. I don't believe in it as the market being a measure of the health of America's corporations now we don't have -- earnings to suggest. That that these prices are warranted on stocks but then you market looks 69 months down the road and the market is site -- with a -- keep on falling. A profit margins pretty good you hope you could justify Dow 10000 now because of what's going to happen in the future you don't buy that argument."

" What we have such a long -- ago we talked about before that the price to earnings ratio for the S&P 500 is about a 140. To one not even a bull market we know that should be. Around twenty maybe 25 let's say thirty but a 140. Yen one."

" What I would you said that the day before yesterday I picked up on that -- I could not believe it. We have an email love mr. Jorge Posada coming from Los Gatos California he tells is that. Barron's. Looking towards 2010. With things as broad street gutter right they are projecting. A PET all 144. Fuels speculation -- that's the projection from back and so right that is your your numbers go up they -- persons developer's stock -- but your site in -- right now the -- in ratio of the S&P 500 is a 140."

" Right because earnings are so absolutely terrible you know we've we've talked a lot about third quarter earnings for all kinds of companies JPMorgan is a great example JPMorgan's results were great and they had a good quarter. Don't want to diminish at all. But you look at their benchmarks that -- comparisons a year ago. Wonder what kind of quarter to JPMorgan having your code that doesn't problem maybe the worst quarter they had in their history. A lot of these comparisons are making the numbers look a lot better than they really are. If not that that the recovery hasn't -- that companies are doing better but they're not doing better to leaps and bounds that. That these these comparisons that we are used do you think so suggest."

" position is very simple yet the price of stocks has run way out ahead of the underlying profits and it's good that there's got to be eight pullbacks and it is a speculative market right now. With nothing really. It's seeming to that's not what I set -- pullback is coming soon you think. I think it can't go on like this I'll say that you can we got it David --"