The market has been undergoing some end of the quarter window dressing, and it痴 nice to see the buying pressure come in on many of the stocks in the IA portfolio.
Last week, the Fed raised key the lending rates, and said that inflationary pressures should be moderating but didn稚 rule out any future rate increases.
After a brief run up that could carry us into the middle of the month, the market will begin to focus on any weakness in the economy, and any possible future rate hikes. I have been preparing you for many months about the potential for a severe downturn in the market. My best guess is the August-October timeframe could create some wonderful bargains.
Today, North Korea test fired some missiles that basically failed the test. It痴 amazing how the news media jumps on every little thing to create fear and panic. If it isn't terrorists, it痴 the heat index or wind-chill factor. If North Korea were a serious threat to the U.S., we have the capability to completely destroy their nation without sending in a single serviceman. I wouldn't give this failed test another thought.
Many Wall Street junior traders will probably take the rest of the week off. The senior traders are on vacation for the remainder of the summer. This means that trading this week will be in the hands of the hedge funds. Given the large short positions in the market, they will probably attempt to cover those shorts and push the market higher for the next few weeks.
I will be out of the office for the rest of the week. I will be at the University of Florida coaching at the schools baseball camp. In another life, I use to be a baseball coach (many moons ago), and many of my former coaching buddies are still grinding away.
I can稚 wait to put on my hat, lace up my spikes, and head for the baseball field. I have to admit my pant size is a little larger than it use to be, but I can still swing the stick. I値l be working off my pant size this week.
So, for the remainder of the week, forget about it. There will really be no rhyme or reason for any gyrations you see. My advice is, take the rest of the week off and come back on Monday. As much as I hate to be away from the markets, that痴 what I plan to do.
See you next Monday.
