Nice little covering rally at the close friday. Something that was absent Thursday. This is the beginning of the month and we could well see some buying this next week, or should it be this next "weak". The intermediate term , 6 to 18 months out, still looks down to me. I am expecting a "correction" eventually to around the 1280 level, but it will surely take quite a while to get there. Our earlier move into the 13 hundreds was just not enough.
Volatility so high, not just the past couple days, but for weeks now, is typical of unsettled periods when the market is "deciding". Looks now like 1570 may have been the top for a few years, but nothing surprises me when it comes to the market, especially during an election year, which we have coming up. One thing i've learned in forty years is that bulls die extremely hard. I first witnessed this in 1957 in Barcelona and the lesson learned has not been forgotten.
There should be excellent opportunities for investors to cherry pick banking and financial stocks though it might be best to wait until there are signs of life before wading in. Since it is impossible to pick bottoms, I wouldn't be critical of any long-term investor who wanted to start averaging down at this point in the financial sector. But, of course, be prepared for a long wait.
Has anyone besides me paid any attention to Diageo (DEO)? I can't think of a more recession proof stock than this with a nice payout, and offering some protection against dollar devaluation to boot. What a great stock for the grandmothers out there.
It has struck me that the silliest thing about Stck_tdr portfolio is that it is filled with mojo stocks that must be traded, yet he is seemingly taking the stance of a long-term investor. This can not lead to anything good in the long run as he will eventually find himself, unless he is extremely lucky, back where he began. There is nothing wrong with his stock choices, but to fill a long term portfolio with these mojo trader's stocks and then sit on them is rather insane in my opinion.
This market has been kind to me intraday. (i'm trading the Russell futures). Good trading everyone.