Fear oh fear, where have you gone. Yesterday I had a couple of names I was thinking of buying if the market opened down 100 points plus. Instead the market opened up!! After last week drubbing with a horrible Friday it would have been nice to see some fear by investors instead of the ho hum market bounce. As a result I was like no fear, no reason to do anything today.
Today it looks like we may have started our pre Fed release bounce. From a trading perspective you might accelerate to the upside going into the close tomorrow as people will not be wanting to go short (so less selling pressure) before the Fed release. Once again I am not trading it but that is what I am expecting. You could have a couple of very strong days in financials on those technical dynamics alone.
Another dynamic in all of this is redemptions in many hedge funds due at the end of June creating forced selling. I think that is some of what you saw last week and what you may see at the end of this week.
There is very little to get excited about. Huge price increases in iron ore which makes steal and in Dow Chemical products. The great secret tax (inflation) is breathing fire like which has not been seen in over 20 years.