Market Stalling. Are we done yet? The rally since last december seems like a never ending story, everyday up without fail or very small down, we are near the 52 weeks high on the DOW today, another 20pts and it would have been a New High. In this run up, the SP and Nasdaq are weaker in comparison, Whats going on here folks? Is someone holding the market up. That’s the feeling that i get…..
Then if we look again, the dow only comprises of 30 Stocks, anyone buying these stocks up and providing the world with Hope, is certainly doing a very nice job.
The Baltic Index is near 2008 Lows.
In any case, I think today we have a chance of a turnaround, the Euro and the Dollar are both near their corrective levels. We were indeed oversold on the euro at 1.25 Zone, there had to be a short squeeze coming, when FX IMM currency bets were at the highest against the euro. The squeeze is here guys and think its near about done. Lets see if 1.3225 holds or not. I feel todays 1.3180 was about it, and we turn from around these levels.
Dow has given back most of its gains and its trading near its lows. It may break down into the close. if it does, maybe this could be the first leg down for the top.
Alternatively we may only top somewhere around March 2012. Lets see how this trade plays out. Taking a long stand on the USDCHF.
Break lower on the Dow, will take a short on the march dow or get some puts.