Over the past two trading days the market has shown moderately bullish resillience. Near term trends have turned slightly bullish in most major indices but intermediate and long term trends remain decisively down, which does not offer us a good risk:reward ratio.
Over the weekend it is possible that LEH and AIG may get government financing, which could give the market a boost on Monday. On the other hand, the oil rigs in the gulf are in the path of another hurricane, which could spike oil prices.
The market has been in a tug-o-war between bulls and the bears so it's really hard to know what to expect on Monday. At best trying to predict Monday's action is a craps shoot.
We really don't like the odds on either side right now.
When risk:reward improves, we will put our sidelined cash back to work.
No comments:
Post a Comment