On this “sell in May” kind of a Friday, the market is struggling to find direction, with bulls and bears alternating days that they steal the show. I have been sitting back in heavy cash this week, despite the fact that the senior indices have yet to suffer any real kind of technical damage. We seem to be trading inversely correlated to the Dollar, which adds to the whipsaw. As I have noted, the Dollar is still in a massive overall downtrend, but that not preclude a vicious countertrend rally over the next several weeks.
As the session progresses, I am in no hurry to make any moves. The financials are still threatening a major breakdown here, and I have thought all along that the bulls needed them to at least be benign in order for equities to remain intact. Instead, a major breakdown in financials here would likely allow the bears to seize more control of the broad market.
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what do you make of the story on Pension? Stock has dropped like a rock the last week. Wonder if they are the next Lehman blow up. Thanks for your insight
Not much of an opinion yet. I will do more research on it.