A diary of the thought process behind my investment decisions
The First Dip
Dip buyers are getting their first chance to buy a pullback since the rally started, so its little surprise that 1130 on the S&P 500 has been defended on the first test. While I still believe that portfolio managers are under-invested and nervous, the greater than $40 billion worth of secondary offerings this week will go a long way in helping to get them invested. Due to how extended the markets are I expect that the upside will remain limited and a break of 1130 is still a very good possibility.