Monday, June 26, 2006

Are You in a Casino?

FED rate decision looms in three days. We are in a sideways run, barely hanging onto multiyear support on the indices.

Today's only news were three major mergers, worth billions of dollars. And this was announced in the morning.

The whole day we spent hovering around 11k on the DOW.

AND THEN ... BOOM, buying going into closing. Dow ends up 50 some points. WHY ARE YOU BUYING right now? Are you ready to face consequence when the FED raises rates (almost certain). Ben is eager to pop housing, and slow down growth.

What makes you think that the long term outlook of the US economy is something worth buying into?

Well. Time will tell, and right now, I am a little confused to the buying. But at least, according to the volume today, it shows that the only people buying are few, and if you were one of them, you should have some nice stops put in place.

We are no longer in oversold territory, and to see the market fall even more, is very plausible.

Until the 29th, I'll be a little confused to see buying into the current conditions of the market. I believe that if you are buying into the markets right now, you are taking a little bit of a gamble, that isn't entirely on your side. Unless of course, you are buying for a nice day trade before the announcement, then that's a whole separate game.

And until the 29th, a nice little holiday is a perfect thing to have, rather than watch a light volume struggle between bulls and bears.


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