Monday, July 20, 2009

Couple of Reasons why the rally might not last

1/ the earnings that are coming out good are the banks - and they can cook books really easily. the earnings that are bad GE are the ones that show some red flags.

2/ economic indicators are flat, and haven't shown full recovery.

3/ a lot of the up-spikes maybe due to short covering in the SP500 as EVERYONE was hoping for the head shoulders breakout to the downside.

4/ the friday volume was the lowest of the year, and tonight maybe where we really see how the market thinks about this rally.

I still hold short sp500 - I will close that short if the market continues to move higher tonight.