Very Low Volume in the Standard and Poors
June 15, 2010 | Posted by 401k RolloverHistorically, it’s been quoted as “In May, Go Away.” This has been said probably for a couple of different reasons. The first is during the summer months, there will be less volume in the stock market. Less volume, means the stock market will be a little more volatile.
More volatility equates to a higher amount of risk. With so much going on, and Greece basically bankrupt… what will happen next? I anticipate a short rally if and when the S&P gets back up above it’s 200 day moving average. This could happen in the next few weeks. This rally will probably be from all the shorts covering their positions.
I don’t believe the rally will last very long either and we’ll probably end up back down lower than we are now. Again, I do not suggest you all go out and make trades based on what you read here or because Cramer said so. You should do your own due diligence before making any investment trades.
Just be careful in other words is what I’m trying to get at. Until the US businesses are able to start getting loans to run their businesses, I don’t believe the job numbers will increase. This simply means unemployment will remain high and unchanged. Without growth, I believe we may be heading for a double bottom by the end of this year.
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Categories: Retirement | 
Tags: Greece, rule #1, S&P, unemployment, volatility, warren buffet | 
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