Tuesday, 1 May 2012

Are We There Yet?


Bull’s-eye! We did go up huge today as anticipated. Question is, have we seen the test of top today?  I am getting a funny feeling that we have. While DOW made a new intraday high at 13340, SPX touched 1415 and reversed from there.  Tomorrow will tell us if indeed we had a test of the high. Again, I want to emphasize the point that the markets are not going to roll over tomorrow and in fact a push is still possible but the energy seems to be diminishing. The upside now seems rather limited. Despite new high in DOW, NYMO did not go up much and is in that zone from where it can go up 25 handles but can come down 135 handles.

Today most of the European markets were closed.  Overnight RBA reduced the rates by 50 basis points and that caused a drop of almost 100 pips in AUD.  Even Euro dropped almost 50 pips. US Dollar is stronger across the board except CAD. It seems US $ has made a double bottom at 78.60 may now stage a recovery.

US treasury bonds are on a buy signal. All in all it may be time to be cautious. Some of the defensive positions in our model portfolio have been updated.  We will add positions as we go along and deem fit.
Thank you for reading  http://bbfinance.blogspot.ca/ . 
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8 comments:

  1. Anonymous1 May 2012 at 16:57

    going to help all the bears out there. we are going to 1450 and higher before we even turn. Write it down, and stop trying to call a turn at every high. TREND IS YOUR FRIEND. When the market turns, THEN it is time to take that trend.

    ReplyDelete
    Replies
    1. World of Finance1 May 2012 at 18:34

      Agreed that trend is your friend and that's why I do not suggest to front run. Just laying a defensive bet with only 25% of the portfolio.

      Delete
  2. Luis2 May 2012 at 04:14

    But it really going to turn...Europe is a mess...

    $usd will go up the rest of the week and beyound..

    ReplyDelete
    Replies
    1. World of Finance2 May 2012 at 08:57

      I hope so. Unless we go down and have some panic, how Bernanke will give us free money?

      Delete
  3. CBAC Funding2 May 2012 at 07:19

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  4. alexnewbee2 May 2012 at 07:25

    but today we are down big :)

    ReplyDelete
    Replies
    1. World of Finance2 May 2012 at 08:57

      Not big down yet. Just a typical topping process. In 2011 it took more than 2 months for the top to form.

      Delete
  5. Jake Walters2 May 2012 at 09:25

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    Thanks
    Bruce Bent II

    ReplyDelete

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