Feb 16 update. The short term target I outlined earlier has been achieved. We got our rally on the SPY to close to 110 on very low volume. What will happen next? I wish I knew. Certainly commodities, and stocks for that matter are overly extended and due for a pullback.
Whether this pullback is a nasty correction (SPY 102), or the SPY will continue to rally is up in the air. Certainly it is troubling that the rally today came on very low volume. Also this week is options expiration, and a lot of wacky things can happen.
Long story short, be defensive. If a major correction occurs, wait till the dust settles before trying to find the last leg in the bull. If the market rallies, and confirms a rally, then this may be the last hurrah for the bull market before all the real fun stuff occurs when many countries, companies, or people starts defaulting on their debts.
No comments:
Post a Comment