This week looks to be a busy week in term of IPOs, as the calendar is pretty heavy. Additionally, the government is in the market every day selling shares of Citigroup. This new supply adds to my desire to short a rally early in the week, if we get one.
We will be entering the seasonally weak part of the year on Wednesday. While sentiment has moderated in the past week it is still extreme on an intermediate term basis. The second half of the year will see a decline year over year in stimulus and tougher comps. If this market is going to turn down or if this market is going to have a meaty correction this seems to be the time when it should do so.