Bad News

I believe the market is in a position to rally but the news flow has not been helping. We had a miss in unemployment claims, European sovereign spreads going the wrong way and lukewarm earnings from most of the large cap tech darlings.  There is still time for a rally in the next few days but that window is closing. I view the EU crisis as the biggest obstacle as nothing is being done in response and it is hard to imagine it getting better on its own.


Shubh Desai said...

Do you think this wave of bad news from Europe can create a mini crash for few days like last year in 1st week of August?

Tsachy Mishal said...

Last year we saw the S&P 500 fall 250 points in the space of a little over 3 weeks. While I would not rule out a quick 30 to 40 point dip lower at some point, I don't believe we will see that type of a decline.