Financial markets relief tomorrow - a guess here
On March 27 there was a short note here, "Financial markets are now in for a stall out", followed by another on March 29, "Financial markets will still slip."
Both were right as markets have not only stalled out but slipped, seriously slipped since then. If I had the guts to back up my thoughts with action, one of those double leverage market short ETF's should have been a play at the time, but those things are scary if you get it wrong. My action, almost none, was just to stick with what was there and not add a thing no matter how attractive, and sell one stock that already was bothersome.
It would be a welcome break if everything settled down tomorrow and allowed everyone to catch their breath. That's my best guess, as shorts will cover part of their positions to book some of their great five days of profits. They could be wary about the earnings season that begins in earnest over the next two weeks and could be a little less troublesome than some presume. Political uncertainty is mildly reduced with Romney assured to be the winner on the Republican side and now those with that inclination can begin giving all of their money to the main GOP superpac, American Crossroads or whatever it is called.
Alcoa, while no big financial power is sort of the New Hampshire of the market, as it always reports first as it did today and beat expectations.
Tomorrow should be a day of relief. If not, Katie bar the door.
Both were right as markets have not only stalled out but slipped, seriously slipped since then. If I had the guts to back up my thoughts with action, one of those double leverage market short ETF's should have been a play at the time, but those things are scary if you get it wrong. My action, almost none, was just to stick with what was there and not add a thing no matter how attractive, and sell one stock that already was bothersome.
It would be a welcome break if everything settled down tomorrow and allowed everyone to catch their breath. That's my best guess, as shorts will cover part of their positions to book some of their great five days of profits. They could be wary about the earnings season that begins in earnest over the next two weeks and could be a little less troublesome than some presume. Political uncertainty is mildly reduced with Romney assured to be the winner on the Republican side and now those with that inclination can begin giving all of their money to the main GOP superpac, American Crossroads or whatever it is called.
Alcoa, while no big financial power is sort of the New Hampshire of the market, as it always reports first as it did today and beat expectations.
Tomorrow should be a day of relief. If not, Katie bar the door.
posted by John Borden at 9:59 PM
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