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.
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