The Russell 2000 provides some clues as to what to expect next week. She appears to be shrugging off the global subprime meltdown and credit freeze, and could be a harbinger for better days ahead for stock investors. While the headlines are bearish, there appears to be positive developments below the surface, as the R2K is showing signs of vibrancy after a bruising 10% pullback. The key point: the market leads the economy, and the market is the ultimate barometer of how things really are, not what some talking head or market pundit wants you to believe (or wants you to believe so that their positions move in their favor!)
On another note, IBD certainly changed their tune quickly. They are reporting a "rally under pressure," mere days after a follow through and a new bull market claim. Their take is that in 13 out of 14 times since 1982, when the market has flashed a distribution day within the first three sessions of a follow-through, the rally has gone on to fail. We'll see if they are right. Good luck out there!
No comments:
Post a Comment