A Frustrating Scenario for All
On Monday, I delineated a list of market indicators that needed to confirm to the upside. If you take a look at it now, you'll see the market is still in the same place: There were no higher highs in any of those numbers. Yes I know the market was down on the day, but even the KBW Bank Index stopped right at the recent highs.
Lately, it has seemed to me that short-covering provides the only fuel on the upside. Two weeks ago, when no one expected anything from the European Union summit, we saw the market explode upward on a Friday -- with only minor upside follow-through in the next two trading days. Then the major indices declined for six straight sessions, with everyone feeling gloomy as trading closed last Thursday. What proceeded to transpire Friday was a surge upward -- with no follow-through Monday. What else am I to conclude except that, if folks get gloomy enough, we can see a round of short-covering rallies?...352 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
There’s no substitute for a trading floor to get great ideas, so Jim Cramer created a better one at Real Money and blogs there exclusively. We then added legendary hedge fund manager, Doug Kass, with his exclusive Daily Diary and best investing ideas. Staffed with more than 4 dozen investing pros, money managers, journalists and analysts, Real Money Pro gives you a flood of opinions, analysis and actionable trading advice found nowhere else, and allows you to interact directly with each expert.
Already a Subscriber? Please login.