Real Steel is a bullish story of comebacks and bonds between fathers and sons. It took a down-and-out boxer and a junkyard robot, added the heart and fearless optimism of youth and succeeded against tremendous odds. It is a story that resonated with investors last week as the Dow Jones rose 4.88% and drove us back into positive territory for 2011. The correction is bouncing back from the lows of a few weeks ago, despite no real solutions to the global debt crisis.
Reel Steel tops the box office again this week (barely) by beating out two retreads of old movies (Footloose and The Thing). A dismal comedy bombed (perhaps The Big Year finally puts Steve Martin to bed for good?).
So, the question is how long will this rally last? As you can see from the MarketBOB long wave, the last two recent peaks were marked by big action movies topping the box office. This could be signals of confidence peaking in the investing herd:
What does the likely future hold for markets? Big movies coming soon include The Three Musketeers, the Latest Twilight sequel, Immortals, Mission Impossible and Sherlock Holmes sequels and the dark mystery about the Girl with the Dragon Tattoo.
For now, we see a real rally with Real Steel and the Three Musketeers. After that, our heroes get much darker and full of mystery, much like our real economic options to solve our debt crisis around the globe. Enjoy the movies!