Stocks Higher By 2% – We Find Ourselves Hitting Resistance

May 26th, 2009

QUICK NOTE: Member’s Only Video going out tonight following the close today!

 

Shorts are taking a nice little bath today and giving back some of our hard earned money last week. There’s no doubt that people are trying as hard as they can to look ahead – 6 months to a year – and “hope” things are going to be better than they are now. But, the reality is that unemployment is still extremely high, housing prices are falling, and consumer spending and income are dropping. Of course I am not a believer in fundamental trading as a basis, but we have to recognize facts as facts. As I have said in the past and will continue to say over and over; if people do not have a job they don’t make money, which they cannot spend, which will NOT create economic growth. Simple as that folks!

 

Now, the markets have reached a pretty good resistance level today following the big pop higher. We are still in a two week down trend as long as we keep the levels where they are right now. To me, if the indexes do not push above the recent highs, then this is nothing more than another retracement back to resistance. Let’s see what the rest of the day will bring.

  • Share/Bookmark

Comments are closed.