If you are out of the equity markets as a result of stops last week. The question
of re-entry conditions arises.
The US futures are up strongly this morning as a result, no doubt, of the
nearly $1 trillion European bailout package for Greece and other contingent
country credit problems (Spain, being the largest economy of concern). We take
note of the fact that the US stock market continued to fall after enormous
bailout packages. However, each time has a different fact set. This bailout
may be the proof of a failed international rescue begun in 2008, or it may
simply be later stage cleanup of a healing process well on its way to completion.
If the fundamentals are acceptable to you (and that varies widely by person – we
are a bit on the wait and see side), then these charts may be helpful in determining
when to re-enter.
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