Back in Bizarro World

 | Jul 25, 2014 | 11:38 AM EDT
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We are back in bizarro world again: Interest rates are going down and that means sell. I know, I know, it seems silly. But remember what I keep telling you about money managers: They need to see rates higher if they are going to trust the market, especially after that strong weekly unemployment claims number yesterday and a very good durable goods number today.

These are all signs that things are getting better, so interest rates should be going higher. Higher rates mean better profit margins for the banks, which is a key group. Higher rates mean that you can trust the economic expansion. Higher rates mean the market is not artificial.

Lower rates mean something is phony and it's not good. Lower rates mean sell the industrials no matter what because "they must be wrong." It means "dump aerospace, take profits in tech and ring the register ahead of what could be a volatile weekend, geopolitically."

Plus, there is so much new supply hitting the market next week -- so many initial public offerings (IPOs) -- that we have to expect the buyers to be inundated. The supply/demand imbalance is ridiculously tilted toward the sellers.

Sometimes you have to accept the severe decree. The sellers, for example, in Boeing (BA), in General Motors (GM) and United Technologies (UTX) , which are three stocks I like very much, just keep reloading and reloading. The buyers are being overwhelmed.

I say let it come down. There is no hurry. The market doesn't like the rate, supply or geopolitical picture. I'm not so crazy about it either!

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