It's Friday, the end of the week, and the markets have made some remarkable recoveries in the last several ...
It's Friday, the end of the week, and the markets have made some remarkable recoveries in the last several days. As we discussed yesterday, has this market put in a bottom? Unless it's a complete breakdown this afternoon, it would appear the markets are going to close higher for the week.
Cyclically if we close lower today in the equity markets and in crude oil, it would appear we have put in an interim top in both those markets.
Let's do a reality check... Have any of the problems in Europe gone away? Has all the uncertainty and doubt surrounding the banks in this country with the foreclosure and mortgage problems gone away? No, they all still exist and that is why the longer-term trends in these markets continue to be negative.
I would say if the markets close lower today, you will want to maintain any short positions you have, and possibly add to those positions. We will be looking at the charts to get a clear picture to see exactly what is going on