Premarkets were up this morning +0.50% but took a nose dive right after the markets opened to flat but in the green.
By 10 am the averages had melted back up to +0.45% starting what may be a volatile sea-saw trading session. The sudden melt-down this morning may have been a fluke with some one-source selling causing the decent. Who knows, it could have been an attempt at a pump-n-dump.
What is important to understand, it that we are in a zone of uncertainty that began at the end of February this year with sideways trading and a new historic high. It is not the time to be bullish and load up preconceived great deals, but on the other hand . . .
It is not a good idea to drop a bunch of inverse ETF’s into your shopping cart for the simple reason Mr. Market may not be finished playing with us. Even the saying, ‘Sell in May and go away’ might not work out. I would be very cautious and alert.
Bull market won’t die until a recession hits: RBC
Investors are hotly debating whether this five-year-old bull market can tack on more years of spectacular growth. But a strategist at RBS Capital Markets has a boldly simple prognosis for the years ahead: it would likely take a recession to stop this bull market.
After 30% gains in 2013, the S&P 500 index SPX +0.66% is up a mere 0.81% on an operating basis so far in this year. Given the fraught push forward in 2014, investors have approached the bull market with feelings of trepidation.
Bull market won’t die until a recession hits: RBC
The short term indicators are leaning towards the hold side at the opening. The all important signs of reversal, up or down, have not been observed so we are mostly, at best, neutral and conservatively holding. The important DMA’s, volume and a host of other studies have not turned, only a past 6% correction (and recovery) and that is not enough for me to start shorting. The SP500 MACD has turned flat, but remains abovezero at 3.90. I would advise caution in taking any position during this volatile transition period although Barchart.com shows a 24 % buy. (Remember this has been negative for weeks.) Investing.com members’ sentiments are 76 % bearish.
