It looks like we will get hit a little bit today but the question is how much. The main market selloff buzz is due to the North Korea missle launch, the US credit rating downgrade, and terrible economic data in Germany. 875 is key support on the S&P, so it is a great entry to scale into longs. If we break, the next support level is 830. I will need to see how rough the selloff seems before I can determine how bad things seem to be. As for building longs, I like steel, technology, dry bulk shippers, oils, semiconductors, and plays tied to mobile technology.
As for the market, we are at pivotal levels. If we can hold these levels and show a strong bounce, we should go way higher. June is almost here and that is the last quarter of the month. Many institutions are underowned and if they see the benchmarks continue to move well and hold, they will be forced to go "all in" in June, which will drive up the indices. There is more of a bearish sentiment coming in since earnings season is gone but I don't want to be net short.
So, we shall see, if this another classic "Sell in May and go way?"
RF Watchlist (a few names): AAPL, RIMM, STAR, ATML, USD, MCHP, PBR, WFC, LUV, CAL, etc...
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