The new financial meme is that the markets are losing steam in their rally.  The problem is we have heard this story so many times since the March recovery first started.  First it was at 8000, then at 8500, then at 9000 and 9500 and now we’re hearing it at 10 thousand.  But the fact of the matter is that if one were to track all of these small drops (not corrections), there is a pretty clearly cyclical element to how they repeat.  This is because most of these drops are fundamentally based on speculation and investor profit-taking.  They are not grounded in fact and indicators the way the recovery itself has been.  So when you see the Nasdaq losing 1.2 percent making three bad days on Wall Street, then be wary before you call this a major correction or a “pull back”.  News media loves such coverage, and looking at CNBC or Bloomberg will give you such a feeling, but the fact of the matter is we’ve seen this before and it is so predictable and expected.

Last time we said a minor pull back was ahead, it took place but solely to the scale of all the other minuscule sell offs we’ve seen over the course of this recovery.  The fact of the matter is that ultimately, Thursday’s 3Q GDP numbers are very likely to show growth of more than 3 percent and will buoy the markets significantly as it will mark the first quarter of GDP growth in a long long time.  The media narrative will immediately be reversed and all will be well again for Wall Street (unfortunately, not so much for Main Street).