Thursday, July 29, 2010

Europe is Outperforming

Europe got so oversold and hated that most funds are underweight Europe.  With the European crisis more hype than substance, Europe is catching up with the US.  Thus, if we are going to get gap downs in the next couple of weeks, it will likely have to come from weak US data, not from Europe. 

I expect early weakness followed by 2nd half strength into the close.

No comments: