The SP500 rally from June 4th 2012 was led by (believe it or not) Utilities.
Or a defensive allocation of capital. This ended after ECB Presidents statements
of 'it will be enough' and then funds moved out of defensive to aggressive
sectors.
But or is it simply profit taking on the defensive rally, or a trend change.
The @RTDEF::@RTPRD cycle suggest that a 'risk on' period is due, and this correlates
with the expected bullish trend during a presidential cycle. Risk is on until
the angry bear wakes up. We hear that Merkel is back from holiday this week,
so the news should flow should either confirm or deny the 'path of least resistance'
bullish bias.
Listen how folks on TechTicker try to make a bullish spin, no matter how sad
reality is. The truth is that this is a QE wait rally. Nothing more or less.
Nothing to do with so called stock market valuations or economic fundamentals.
We expect a slump in stocks, until the world wide central banking policy is
clear.
We are financial market enthusiasts using methods expressed by the Gann, Hurst
and Wyckoff with a few of our own proprietary tools. Readtheticker.com provides
online stock and index charts with commentary. We are not brokers, bankers,
financial planners, hedge fund traders or investment advisors, we are private
investors.
LEGAL DISCLAIMER: The material is presented for educational purposes
only and may contain errors or omissions and are subject to change without
notice. Readtheticker.com (or 'RTT') members and or associates are NOT responsible
for any actions you may take on any comments, advice,annotations or advertisement
presented in this content. This material is not presented to be a recommendation
to buy or sell any financial instrument (including but not limited to stocks,
forex, options, bonds or futures, on any exchange in the world) or as 'investment
advice'. Readtheticker.com members may have a position in any company or security
mentioned herein.
Circle Us