Markups

Today feels like the markup day as tomorrow is the last day of the month. I believe that we will get a better rally once politicians hint that there is a deal. That said, I don't believe it will be up, up and away once the debt ceiling is raised.

The reason I believe the upside is limited is that the market still has issues. I thought the deal last week would put Europe on the back burner. That has not happened as markets are once again challenging Spain and Italy. The EFSF fund to deal with the crisis will not be available before the Fall, as Parliaments still need to approve it. Additionally, the economy is slowing and the Summer is not typically seasonally strong. My plan is to sell into the debt ceiling rally when it occurs.

1 comment:

Fred Ngo said...

What do you think of the close?