Let's pan out once again and check on the SPX monthly chart. As you can see, we closed right at the December 2000 high, which is an important marker because it was the first in a series of monthly bear flags on the way down to the 2002 lows. This month's candle does not look pretty with a clear rejection at 10/20 month moving averages, but we still have two days to go. It does look like they want to sucker back in the "sell in May" crowd, which explains these rallies with 130 oil and consumer sentiment in the tank. But the real question is: at what point do bonds become attractive once again on a risk/reward basis? We will soon find out.
Informal survey: have you noticed how fast items are shipped when you order online? Even when you elect for free shipping and the slowest method, it gets there in less than two days. Either UPS does not distinguish anymore between second day air and ground, or warehouses have nothing to do and 15 employees are busy packing your one pair of sneakers and getting it out the door the minute your card is approved. It almost makes you wonder if you should be buying anything now.
This entry was posted
on Wednesday, May 28, 2008 at 5/28/2008 07:07:00 PM.
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