Selling the Draghi Rally

The market staged a large rally Thursday after European Central Bank head Mario Draghi promised to do "whatever" is necessary to save the euro and the eurozone. Color me skeptical, but until that phrase comes from the Germans, investors should sell the rips. I also was not impressed with the nature of the rally: Defensive sectors -- telecom, utilities and consumer staples -- were the sectors showing outperformance, and the 10-year U.S. treasury yield hardly budged. That isn't exactly the nature of a real "risk-on" rally.

I think there are just too many problems in the market and the economy right now for a sustainable rally to appear. Investors should use these one-day updrafts to lighten up on some of their high-beta positions and build some cash, as I think we will have better entry points by the end of summer....454 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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