Please Sir, May I Have Some More?

Well yesterday was a nice change of scenery, unless you created the worlds largest social networking company (or just painted graffiti for it). It was about time we printed a positive day. As I wrote yesterday, I hate being pessimistic, but we can’t look at yesterday’s advance and assume a change in trend. It’s still Europe’s roll in the exciting game of Risk.  

I’d been looking at different signals of the market being oversold (here, here, here, and here) but I definitely wasn’t the only person looking for an oversold bounce sometime soon. Call it a dead cat bounce or an oversold rally, we are not however out of the mud yet. As Brian Lund wrote last week, we need to see more blood. A bounce to 1345-ish would not be completely out of the question after this most recent 38% retracement off the April high, but neither would a test of the recent low and/or 360 MA. Play it smart and don’t just set it and forget it with positions in this type of market environment.  

Disclaimer: Everything in this post is meant for educational and entertainment purposes only. Do not construe anything written in this post or blog as a recommendation, advice, or an offer to buy or sell any securities. I or my affiliates may hold positions in securities mentioned in the blog. Please see my Disclosure page for full disclaimer.

Europe Runs the Show

No matter who IPOs or what the charts say, this market is controlled by European headlines. This afternoon we got one from the BBC, “Merkel ‘suggests Greek referendum on euro membership’.” You just can’t compete with that and there is no reason you should try. Yes things are oversold and over extended but with a market like this, the risk/reward just isn’t there.  

 

Disclaimer: Everything in this post is meant for educational and entertainment purposes only. Do not construe anything written in this post or blog as a recommendation, advice, or an offer to buy or sell any securities. I or my affiliates may hold positions in securities mentioned in the blog. Please see my Disclosure page for full disclaimer.