Trading Range or Bull Market?

Another Asian bikini! Why not celebrate? Maybe the market correction is over!


Here we are, smack dab in the middle of Summer, and the stock market seems have drawn a line in the sand at the 1030ish level on the SP500. There was a ferocious rip off the double (or triple, who's counting?) bottom last week. Reaction to earnings (one day in) seems positive.

Investors Business Daily (IBD) gave a thumbs up to last week's confirmation day.

Bob Brinker gave a buy signal on July 1st and said on the July 11th Moneytalk program that he forecasted no double-dip recession.

Gary Kaltbaum said lots of things on his radio to justify that whatever happens in the market, he was telling you about it weeks ago. (Love your show, Gary). He does favor the trading range thesis here.

Plus, the 10-year treasury was under 3%. Who wants to invest in that?

I have always viewed the correction as something to be expected in the Summer and especially in a mid-term election year. No matter the reason, this just seems to happen.

I think Brinker is right. No double dip

I think IBD will continue to whipsaw its followers.

I think Kaltbaum will continue to entertain.

I think the bounce off the lows was significant. I still have some cash on the sidelines and ignored my own advice a few blog posts ago. I will probably remain patient here in the summer, favoring the trading range view. But if the market does get close to the bottom of the range again, I'm in.