I still think the market might not have put in a good low yet. However, if history is our guide from the past few years we should see some type of summer trading range knocked out within the next few weeks. Over at his The Reformed Broker blog, Downtown Josh Brown had a great post up this morning about the bullish versus bearish factors at play. Think about these factors when we rally, as you are sure to hear them, as well as the other factors when we sell-off.
Be sure to read to Josh’s entire post by clicking here
The “push” lower versus the “pull” higher, as Josh terms it. Here are some examples:
The Push lower comes from:
1. A rapidly deteriorating sitch in peripheral Europe
2. A looming recession for core Europe based on all of the latest readings
3. A slow-mo bank run (bank jog?) that some feel portends a credit freeze if it spreads
The Pull higher comes from:
1. Stocks are hated
2. Stocks are not especially expensive
3. Bonds are over-loved and totally unproductive for investment capital given current yields
