Real or Memorex

Usually these rallies lure investors to the bull camp before they are over.  Nobody was fooled by today's "fake" rally. Which makes me wonder if it has further to go. If we see some cash M&A activity it might have further to go than most think possible. Have a good night.

1 comment:

PJ said...

July is going to be worse than May, I believe. The rally ended this morning.

Don't overlook the Chinese bank IPO and secondaries from the other big banks, not to mention GM's IPO coming up.

More to the point is the huge rotation out of risk that's going on under the surface. Look how real estate (IYR) did in today's "rally." Or the Russell 2000. Look at the persistent bid for Treasuries.

We might chop sideways this week for lack of news. But once earnings season starts, don't look for much upside.