If we close down today in the US then this will be the longest run of losses since last November and stretching towards the run of down days leading into March 2009…
Sentiment remains very poor as detailed in our blog of Sunday and value is all around in equities. It is, by its very nature, difficult to call trading bottoms but the ingredients have been in place for a week now – we just need a catalyst – a catalyst that of course you cannot see until after the rally has been ignited.
The FTSE in particular has underperfomed due to the miners and banks getting whacked in recent days. My monies on the FTSE & Spain leading an uptick over the next few days.
UPDATE (1) – 10AM – EARLY STRENGTH GETS HIT AGAIN. BULLS CAN’T SEEM TO CATCH A BREAK.
My guess is that 8 days down out of 10 is just about stretching the elastic band of this move. Will update this afternoon on the sentiment indicators from the US options market…
UPDATE (2) – 6PM – US OPTIONS BEAR SENTIMENT OFF THE PEAKS BUT STILL PREVALENT.
The market has been volatile again this afternoon with a sharp drop down to 1335 and a swift 10pt rally back towards 1345 into the European close. Be interesting to see if the US does in fact bear out the headline and maket it 9 days down out of 10. Per earlier posts, the market is oversold without a doubt, but in these quiet months, and with little retail participation at present – as evidenced by the continued outflows of monies in the US in particular for successive months, a catalyst is needed to get the computers buying against each other (!) – the Greek parliament just won’t oblige on the catalyst front however!
MARKET CLOSE UPDATE – And so the string of losses is quite something. Market closes towards lows of the day. Will it be 9 out of 11 tomorrow?