A Market With No Leadership
Today’s market went back and forth between positive and negative territory. Volume is heavy with declining stocks out number advancers by 2 to 1. This market is struggling to find leadership. Gains are selective and positive earnings appears to have no impact except for Google’s last Friday’s surprise.
As my mood become more and more pessimistic about the market today, I stop and wonder whether this is actually a good contrarian sign.
Aside from analyzing the psychology of the market, I still think this market will remain direction less until we know what the fed is going to do.
On the inflation note, I doubt it will happen as the Fed will probably raise the rate too much than too little. We will probably more likely to have recession than high inflation.
It's not when you buy. It's when you sell!
