Yesterday, for the third time in 2 days, the market rose after bad economic data. The durable goods report was especially negative. This behaviour is a sign that at the current levels the previous negative economic surprises are fully discounted. There is one more important report, the GDP revision on Friday, that I think is going to attract sellers but any weakness should be bought. I also think the low for this leg down is in at 1040.
The put/call ratio has risen (fallen on my chart) enough to suggest going long:
I expect the market to trade up to at least 1120 in the following weeks.
4 comments:
Adi,
Thanks for the early post.
Good Luck! You are right! I think market react to bad news was ended. Now, we will go up from here.
Tony
Love the blog! I just started reading a few weeks ago, but I you have great insight. Keep it up & thanks
- Tom
Tom,
Thank you for the kind words.
I am glad you like it.
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