Well, sentiment finally won out with the readings extreme for quite a while. I suspect, however, this pullback will be short-lived. My thought before the week was early weakness with a rally beginning midweek. Looks like my timing was off.
So, rally begins middle of next week:)
About 15 min before the open the markets are off just a bit over .5%. I suspect we go lower this morning with a chance of a day end rally. There is just too much liquidity in the markets to keep them down now for long. In addition to interest rates continuing to be next to nothing on the short-term side and very low long-term what are the alternatives? Cash?
For those that worry about short-term rates moving dramatically to the upside, I do not think that is much of a risk as that would essentially bankrupt many countries including the U.S. With a debt this large based upon short-term rates the government will do everything within its power to keep them low. On the long end, however, it’s a bit trickier as the markets tend to play more of an influence.
This should all play out over the next 5 years and I do not think it’s going to be very pretty. But that is for another day.
I am long a few stocks for swings and looking to add-on breakouts. Once we get into mid august I plan on getting more aggressive with my positions. Early September is not the time to get aggressive!
If you want to follow some of my trades along with my thoughts typically given after the open you can go to @rickjswings. It’s my private twitter feed for the stock market and its free. Sports Handicapping is the subscription-based part of this site. But considering the cost of joining it’s almost free:)
Good Luck Today
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