We are starting to see some correction in the indices; however, the question remains "will the dip buyers run in and buy it all up?" I don't know but I have NOT covered any of my shorts. Royal Carribean (RCL) was a easy short at $19.50 but go trigger shy. I know many funds are NOT short, so the economic data this week is a must for the bulls. If bad data appears, this could be all she wrote for the year on the S&P.
As for buys, I will wait to see what is going on. I will add to low beta names and reduce short exposure into "red" days. I also posted a report on Brazil and may add EWZ on dips. The economic prospects look good but I would like to catch is in the high $40's or low $50's.
As for my economoic views, in terms of "double-dip" recession possibilites, we are seeing some interesting events.
1. North Carolina raises sales tax by 1% point this weekend!
2. NYT's article over the weekend highlights consumer spending being pinched.
"A Reluctance to Spend May Be Legacy of Recession" is name of article. For some reason, I can't copy the damn thing - will try later.
All in all, just be smart. The market doesn't seem cheap here and I "believe" we will correct further. However, I have been wrong before...
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