Stocks


Friday, Saw a major short covering rally in US equities. The move off the summer lows has been led by financials (ETF = XLF) Up almost 20%.

The major issue in the short term is who is going to finance sovereign debt of Greece and other European countries.

The German banks are the largest holders of European debt. The Greek situation is crisis #1. Today

  • At 8:00AM EST  German stocks up +3.55%
  • Earlier this AM Greek stocks down -4.6%

This data trumps others and says the rally will continue even though our McCellan Ossillator is at overbought levels 69.87

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The Long Term Outlook has been upgraded to CAUTIOUSLY BULLISH because of a technical breakout in the trading pattern and what is perceived to be a victory for bankstas in Europe. (more explanation tomorrow)

Investors411 has a position bought Friday – SPY (S&P 500 tracking ETF) at 123.5 (see comments section of blog)

Traders – Shadow banks and financials look like they will continue to rally, but are very risky

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Long Term Outlook

3 to 6+ months

CAUTIOUSLY BULLISH*

*Investors411 has 5 different long term valuations - BULLISH, CAUTIOUSLY BULLISH, NEUTRAL, CAUTIOUSLY BEARISH, and BEARISH.

* Everything written in BROWN is a repeat from a previous day(s)

AS ALWAYS, DO YOUR OWN RESEARCH BEFORE INVESTING

ALL TRADING INVOLVES RISK AND POTENTIAL LOSS OF PRINCIPLE

CHECK ALL DATA, I MAKE MORE THAN GRAMER ERRORS.





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