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.

2 comments:

Shubh Desai said...

Tsachy,
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.