Recovery Priced into the S&P: A Time to Sow?

Putting macroeconomic data, or its leading indicators, against the market can paint a bleak picture today: 

The US equity 'market' vs Bloomberg's US Macro Economic Surprise Index (http://www.zerohedge.com/news/2013-04-22/us-macro-data-plunges-5-month-low?utm_source=feedly)


(http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2013/04/20130422_ECO1.jpg)

I would argue that the market priced in recovery, thus the spread in the price of the S&P and the macro data.  We are in the midst of a sideways economy as momentum is gained and jobs slowly come back and the S&P sees this already.  There will be some down days on bad news and that's when I will use my dry powder because I am now convinced that we are in the midst of a long term upward trend in the market.  It won't be like the past 2-3 years but we will see consistent gains during this bullish cycle for at least a couple years.

The question now is whether to add to current positions (KMR, KMP, NKE, CVS, PNRA, KO, BRK.B, INTC, GE, QCOM, DOW, BA, ADP, WU, EPD, SPH, AXP, HEP) or initiate new positions in equities or EM ETFs?  I use macro trends and events to help determine buy/sell points, along with earnings and press releases.  I use these events mostly on the buy end since I don't like to sell good companies unless I have a need.  As long as my holdings grow their equity/bond earnings yield I want to be an investor.  So, near-term bad news of any kind usually indicates a buying opportunity.  

Since earning in my holdings and targets have generally met or beat expectations could the GDP release provide this?     

Interesting Comments Related to Ongoing Manhunt in Boston: What Role Does Economic Prosperity Play in Terror?

Interesting post on ZeroHedge today...

Guest Post: Important Lessons in Domestic Terrorism

  

Relevant to the general public with respect to freedoms and liberties.  Relevant to current events in Boston.  Relevant to investors as the EU unemployment rate increases and the lack of economic opportunity may turn to anger and undermine European stability.

Labor Participation the Culprit for Today's jobs Numbers

As I wrote in my March 13 post on macro factors, the labor participation rate appears to be responsible for the bad jobs number...http://feedly.com/k/10Bc5Ko.

What does this say about the unemployment number and the possibility of further FED action? We will see.

Dr. David Kelly's masterpiece: J.P. Morgan Guide to the Markets

Each year JPM Asset Management puts out their Guide to the Markets. 2013 Q1 is out. It is a wealth of info. Read it and make your own conclusions or listen to Dr. Kelly's frequent podcasts through the JPMAM podcast, he references it often.

http://www.ritholtz.com/blog/2013/04/sp-500-index-at-inflection-points-4/