June 8th, 2012
in Gary's blogging
Late Afternoon Market Commentary For 06-08-2012
I can't be here for the closing comments due to a meeting with several Econintersect customers. But here is how it looks for the duration of the day.
The first thing is that I would not advise anyone to be long over the weekend with more than possible negative news from China and the more than likely Spain asking for bailout money before the Monday morning opening.
In fact I have gone short with a test amount (1%) of SQQQ [51.67] and SRTY [52.15] over the weekend, premium subscribers already notified. Normally, I would wait until the very close to buy and on greater volume, but I should not get beat up too much if the markets somehow decide to rebound a bit on Monday. Whatever you care to do, it should be on the lean side to avoid getting slammed, be conservative. In just about any case a short term holding will see the markets fall enough to recoup any paper losses. Today is probably the last day of the rally. Follow up:
3 Signs The Rally Will Likely End This Week
“The first reason the rally will likely fail is that there has not been any significant and positive news that is driving this rally. . . the Fed seems unwilling to intervene ahead of the presidential election . . . the Chinese central bank cut lending and deposit rates only a quarter basis point.
The second reason the rally will likely end this week is that the market is rallying with no leadership.
The third reason the rally may be short-lived is the very poor volume in the market during the recent rally.”
I wish all of you a great and safe weekend.
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Written by Gary