As suggested in the 06/04 post on the market, there was a good
long side trade to be had the week starting 06/07. But it was a
very short term affair as I had to respect how quickly the profit
taking came in after the market reached a mild overbought on price.
That was certainly not an encouraging sign.
I am on the sidelines now and merely plan to watch whether a
decently tradeable short term trend will develop. It would not
surprise me if a period of price compression is on the way that could
last for a few weeks. If such happens, the eventual break from the
compression period will provide a better opportunity, although
price range narrowing rarely tips you off on which way the market
As of today, the market is trading about midway between a
level that would signal a positive break to the upside and another
decline to test the support zone (1050 on the SP 500). Take your
SP 500 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 !!!