weekend thread, page-6

Stong DOW close for the week up over 100 points. Seems like positive market sentiment is returning as the BP oil spill raising questions around oil is drifting into the news background as the issues are now being resolved. With European banks having undergone stress tests and the estimated capital needed below average, some confidence seems to be returning to European markets whilst in the U.S company profit expectations are up easing concerns about a contracting economy. With treasuries down and building permits and takeovers up, I am one who thinks that the first bear market slump that has arguably been on going since early January 2010 has now come to a temporary halt until later this year when the huge wave of commercial and residential Alt-A and option ARM mortgages begin to default.
I believe that the market is in line for another bear market rally after a slight pull back until later this year.



The VIX seems like it is beginning to settle however still seems a little uncertain to where it will lie. I think the VIX may need this week until it finds its feet whilst the market falls a little.



The ALL ords seems to have had low volume recently showing that investors are being cautious about placing longs and shorts. This week is crucial for the future direction of the market.



Please read for commentary.

Sentiment: short this week until market shows some confidence.