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The Bulls Are Due
Over the last 9 hours the U.S. futures and the "SPY" have continued the roller coaster type of action we have seen from the U.S. market indices over the past 4 days. As the Asian markets opened and began trading we saw the futures swing back and forth. And since this morning's early trading started the futures have continued their wave like action, as has the "SPY".
However, the big news is that the futures are not currently pointing to a major drop in the market when it opens for trading in about 2 1/2 hours.
As I see it, even if Friday sees a modest decline, basically a pause, that could represent a change of tone. If such occurs it may indicate that markets are calming down and that the last few days of violent action were part of a base building process.
And if the market actually puts in a gain that would perhaps be the start of at least a short-term uptrend.
After all, the market (based on the DJIA) has not put in even a 2-day rally since the back-to-back gains of July 6th and July 7th.
That means we have gone through a 5 week period during which every rally was a "one day wonder".
I say the bulls are due.
Also... Here's a little tidbit I came across while doing me daily review.
I found it amusing and thought I would share it.
If the market stages a roughly 300 point rally today then the five days this week will have posted the following changes:
- Monday -634.76
- Tuesday +429.92
- Wednesday -519.83
- Thursday +423.37
- Friday +300.00
Pretty volatile, right?
But if one was looking at a weekly chart it would appear that nothing had happened since the DJIA was virtually unchanged.
What would your response be to a vacationing friend who returns and says to you the following?
- "So, I guess I picked a good week to go on vacation since it was a typical, boring, dull summer week of trading. What did you do for excitement?"
I don't think I would be allowed to print my response.
Have a good one...
Curtis Bergquist
Options Manager: Daily Decision-PRO
S&P 500 - Last 12 Month
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