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.