If this game feels familiar to you it’s because this is the 6th time in 8 weeks that we’ve made a run at S&P 1,200 with only 3 of those attempts being successful and none of those lasting more than a couple of days before busting again. That being the case, you will have to forgive me for being a little cynical just 2 days after I went bullish and called a bottom. It’s not that I’m flip-flopping – we’re simply playing the range and if the trip from the bottom to the top of the range is just 2 days – then flip-flop we must!
Of course we’re going to give the S&P a chance to prove us wrong but we’ll also be bargain-shopping on the bear side into any weakness so we’ll be setting some aggressive targets for today – 2.5% moves up at least to Dow 11,300, S&P 1,200, Nas 2,575, NYSE 7,100 and Russell 685 to keep us believing in the rally fairy. The Russell finished at 666 exactly, which was my target for the day from Monday’s Member Chat and also the mark of Lloyd, a great indication that the TradeBots are on the march and in control. The Dow and the Nasdaq made it our -5% levels on the Big Chart and the S&P should confirm that line this morning but we need to see the NYSE and Russell join the party at our targets or we’re just repeating the same old range.
It’s still the squeaky Greece wheeling around the Global markets with each twist and turn in this fiasco sending investors flying in and out of various assets. The WSJ saves me writing time this morning with their "Euro Zone Primer: Where Things Stand" and David Fry does an excellent job summing the situation up even further, saying:
IMF head Christine Legarde held a news conference which was frankly useless but typical as these things go. Her most significant answer came from a question posed by a Greek reporter: “What will the IMF do with these demands should there be great social unrest in Greece?”
Her response: “Implementation, Implementation, Implementation.” (This statement meant previous agreements must be taken seriously.) The WSJ was kind enough to post a description of just what’s going on as to the calendar and conditions
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