My rather simplistic view here is the length of time that has gone
by since this rally started in early Feb. is simply sufficient to warrant
a pullback of substance either this week or next. So, I am looking
at the prospect of a small short position.
I am mindful of the many commentators, myself included, who have
pointed out for the past few weeks that the stock market is over-
bought. And, it is. But the progress of the rally has thwarted the
attempts to topspot the market with OB / OS formulas.
So the tactic I plan to follow involves waiting for a clean break of
trend to the downside starting with watching for the market to
crack down and through the 10 and 25 day ma's with enough force
to invite both of the latter to roll over as well. If there is no break
of substance, I'll just keep the powder dry.
Check out the SP500 chart and see what you think. Chart.
- Peter Richardson
- Retired chief investment officer and former NYSE firm partner with 50 plus years experience in field as analyst / economist, portfolio manager / trader, and CIO who has superb track record with multi $billion equities and fixed income portfolios. Advanced degrees, CFA. Having done much professional writing as a young guy, I now have a cryptic style. 40 years down on and around The Street confirms: CAVEAT EMPTOR IN SPADES !!!