Is the Relief Rally Over? (by Zacks) >>
3 mensagens
|Página 1 de 1
Is the Relief Rally Over? (by Zacks) >>
Is the Relief Rally Over?
The Dow surged 254 points on Monday to close at 11,539. We had a similar rally just two weeks ago when the Dow tacked on 213 points to close at 11,482 on August 15th. That rally ended with a thud as we found ourselves back at 10,817 after 4 straight days of beatings.
Is this time different? Unfortunately I do not see a single piece of economic evidence that makes me feel better now than I did just 2 weeks ago. In fact, the negative revision on Q2 GDP from last week plus collapsing Consumer Sentiment only has me feeling more negative about where we stand now... and where we are likely going. So I took some more profits on long positions Monday and find myself strongly short the market as I expect we will be heading lower soon.
Note that if you have a 2+ year time horizon, then yes, you can snap up some blue chips now paying great dividends to weather any potential storm. But if you have more of a trading mentality, then I recommend that you prepare for a leg lower.

The Dow surged 254 points on Monday to close at 11,539. We had a similar rally just two weeks ago when the Dow tacked on 213 points to close at 11,482 on August 15th. That rally ended with a thud as we found ourselves back at 10,817 after 4 straight days of beatings.
Is this time different? Unfortunately I do not see a single piece of economic evidence that makes me feel better now than I did just 2 weeks ago. In fact, the negative revision on Q2 GDP from last week plus collapsing Consumer Sentiment only has me feeling more negative about where we stand now... and where we are likely going. So I took some more profits on long positions Monday and find myself strongly short the market as I expect we will be heading lower soon.
Note that if you have a 2+ year time horizon, then yes, you can snap up some blue chips now paying great dividends to weather any potential storm. But if you have more of a trading mentality, then I recommend that you prepare for a leg lower.


- Anexos
-
- Crise 2.jpg (2.4 KiB) Visualizado 472 vezes
... if you feel like doubling up a profitable position, slam your finger in a drawer until the feeling goes away !
3 mensagens
|Página 1 de 1
Quem está ligado:
Utilizadores a ver este Fórum: Ferreiratrade, Google Adsense [Bot], PacoNasssa, Shimazaki_2 e 110 visitantes