Bull markets typically end with great news as the final few "bulls" buy in and catch the top because they have finally seen "the evidence" that tells them the sky's the limit.Whether we have reached that point last Friday as the jobs report sent everyone home for the weekend cheerful and giddy is yet to be seen. However, with plenty of sentiment polls showing the most optimism since May 08, it gets me cautious. On the other hand, not many bull runs have ended in the middle of August so we could grind out in this area or a bit higher thru Labor Day and then see a possible correction.
With that said, I think you have to be cautiously bullish this week with the expectations of higher prices but not be surprised if the rally stalls and rolls over.
The currency markets were jumping on Friday after the jobs data as the dollar soared against the Euro and the Yen got absolutely crushed. This was a very strange thing to see as stocks rallied as well. Perhaps it was just a one day event but if the dollar continues to rally this week it could be a red flag for the stock market as currencies usually know best.
The watchlist:
Longs>>> BKC, IVN, HAS, CTXS, TK, URS, DPTR
Shorts>>> SFD, SWY, MCO
4 comments:
Defiantly gonna be watching the currency markets this week. Bernanke is up to bat baby. I'll be watching the GBP for jobless claims and the quarterly inflation report tomorrow. Then the FOMC shit bust out the red bull tomorrow.
lol make mine a triple grande latte with no foam!
Your too sophisticated.. All you damn finance guys and your Swagger!!
damn i cant be known as a finance guy. im ruined.
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