Better Late Than Never

The biggest negative for the market is that there does not seem to be much of a wall of worry. Rydex traders are positioned bullishly, sentiment surveys are showing very little bearishness and we are seeing very little put buying. That said, I am going to continue to give the market the benfit of the doubt for the next few days for the following reasons:

  • We are headed into the turn of the month, which is seasonally strong.

  • The market will not be overbought until early next week.

  • This debt ceiling show will end and we will likely see a rally when that happens.

  • Europe is oversold and should continue to rally, taking us along for the ride.


Fred Ngo said...

The VIX has bounced from 16.5 back up to ~20 since the last few days -- doesn't that reflect worry and fear?

Tsachy Mishal said...

Good point.