Subscriber Post 6/3/12

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Last week the markets fell hard led by the IBD 85/85 -4.1% loss. The Russell 2000 fell -3.8%, Nasdaq -3.2%, SP 500 -3.0%, and the DJIA -2.7%, with most of the damage occurring Friday. The Energy, Auto, Machine and Software sectors were hit hardest while defensive sectors Utilities, Food & Beverage and Consumer performed best.

The Dow Jones, Russell 2000 and S&P have given back all their gains for 2012, the Nasdaq is still still slightly higher than where it started the year. S&P futures are currently down 9, Nazzy down 17 and DOW futures are down about 95 at about 8 PM.

As you know, this could all change for the better or the worse as we get closer to the open.  Commodities, with the exception of gold were knocked senseless last week. The financials were also crushed. The charts of so many sectors are now broken and need to consolidate before moving higher.

Europe is spiraling out of control right now and the only thing the market wants to hear is a eurobond solution to the problem.

The market is so short term oversold now that an epic counter-trend rally is in the cards at any moment. I don’t have any names tonight and am watching for a time to step in. Shorting on rallies may be prudent, but certainly not here as the fast money was already made on the short side.

I will be in the chat room early in the morning as I wait for Europe to be saved……or not. Believe it or not, I think this all works out. I am in the minority and am the only human long the euro and short the 10 year.

See you in the morning.

 

 

 

 

 

 

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