Hello MarketClub members everywhere, no doubt you have seen the sharp rally which started on Friday and continued yesterday. Tuesdays typically are days when you see a reversal and I expect today will be no different from other trend reversal days.
The proximity of major resistance for all three indices indicates that professionals will be selling against those highs. I'm talking about the DOW which has major resistance at 16,993.43, the S&P 500 which has major resistance at 2020.86 and finally the NASDAQ which has resistance at 4960.87. I do not expect those levels to be taken out on this current rally.
The choppy trading action we had been seeing for the past six weeks is a fight between the bullish forces and bearish forces of the market. At times like this, it is best to look at the big picture for the true trend. That picture still indicates to me that the major trend is down for all three indices. Continue reading "A Perfect Day For A Reversal And Some Stocks To Buy"→
It just seems to this observer that the Greek kabuki dance is never ending. How can banks keep lending money to a country that is insolvent? That seems a little backward and just stupid to me. What do you think of the situation in Greece?
Here's the reality of the situation, Greece is going to default, the bankers may as well get ready to write off those loans as the money is not coming back. The next question is, whose next, Portugal, Spain or Italy? The next buzzword that is going to come out of all this is contagion. I think when Greece exits the eurozone it will be good for the euro longer-term. Think of it like when a company announces bad earnings and fires the CEO. The stock price has anticipated and discounted all the bad news and for the most part things get better over time for that company. The euro is the same way as pretty much all the bad news is out, except the actual exit of Greece from the euro.
Sooner or later it's going to come to crunch time and time is getting short. Angela Merkel and Germany are going to have to swallow their pride and make some important decisions very soon.
So onto the only economy that seems to be working and that is the US. Today I'm are going to be looking at the major indices to see if they are beginning to tire or getting ready for another upward push.