Welcome people to the Cinco de Mayo edition of the market outlook. Futures look relatively stable this morning, which is good since there is no Cinco de Mayo meltdown (well at least not yet). Today, I have 3 big earnings reports: SONS, CBB, and LVS. SONS numbers were lousy but there is no pre-market trading in the stock, so I am unsure how it will go.
As for the market, yesterday was an epic short squeeze. I don't believe the rally is sustainable but the cheerleaders at CNBC believe so. One thing I have learned, especially regarding commodity based markets, is that markets overshoot both ways. Buffett said it best it "when others are fearful you need to be greedy; and when others are greedy, you need to be fearful". We have moved from 667 to 907 in 7 weeks, which is a monster move; however, when greed drives a market, it goes higher, then ends very ugly.
In conclusion, I will cut some of my trading postions this week and make purchase small and limited.
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