Yesterday was one of those days where the market attempted a recovery bounce, but got a lot sold into it. The last 15 minutes had considerably higher volume, and sold off. That was institutional. Same thing happened Wednesday, as I wrote then.
Now, however, and finally, we’re going to get our bounce. Overseas, Japan is ahead nearly 6%, Hong Kong by nearly 3, Britain and Germany by better than 2%. And, our futures on the Dow, 500, and Nasdaq indexes are up by 1.25 to 1.75 of 1%, as of 6:47 a.m. EST. That is considerable.
So, the signs are that we are now going to get our bounce. It could likely be traded, if you are so inclined. I’m not a trader. The bounce needs to be watched carefully, as it is going to tell us if we can possibly regain the bull once again, as happened in late ’11/early ’12, or if we will confirm the bear, as can be seen by charting 2000 and/or late ’07/early ’08.
I’m the eternal optimist. If the American economy is no more wounded than it was, and can still chug out some growth, while the rest of the world actually should stagnate and decline… a lot of money is going to come to these shores, as capital always goes where it is treated best. But… If our economy is weakening, and is going to also go backwards, then the bear will almost certainly come to feed on investors’ capital. Watch!
Here’s to your successful investing!
Harold F Crowell