Monday, June 27, 2011

Odds Favor Bulls

We've gotten through the worst part of the storm.  The market held up well, never going below ES 1252.  And hardly trading below 1260 for any length of time.  The Greece austerity vote will be anticlimactic, whether they pass it or not, the EU will bail them out.  Of course, odds are high that they will pass it.  Bears are between a rock and a hard place.  With weaker oil, the bears had a chance to break the bulls today.  But they don't have much firepower left.  Rather, the bulls have too much firepower as the heat is building up in their empty pockets earning 0%.   It seems too many people are cautious here despite not going down for 2 weeks.

3 comments:

Sandman said...

What are your intermediate views? Or do you look that far out?

Market Owl said...

I don't know what you mean by intermediate. 1 month? 3 months? 6 months? I think we'll be above 1310 in 1 month. In 3 months, above 1330. In 6 months, I am not sure.

eh said...

Would tend to agree -- expect to see some upside here. Perhaps not much.