Go Gators! With that said, I don't know where the market is going. I am not knowledgeable enough to offer useful insight. Maybe this is just my blather, but here goes:
It looks like it's forming a bottom, VIX is above 20, they don't ring a bell at the bottom. This thing _can_ go lower. Think May-June. But that may be "so yesterday". On the other hand, looking back, there are patterns all over the place pointing in more than one direction. What will the market do now?
I'm not sure of the relevance of EUR/USD for today, EURO went down a little, USD up a little. That usually correlates with a down day for stocks, and it was a down day for stocks, so that doesn't tell me anything.
Considering Ben's gamesmanship plus who knows what from the Congress, a resolution of the debt ceiling problem may happen one day with no warning. One has to ask oneself how far down one is willing to fall before it turns around if you got in too soon. Decisions, decisions! Is there some upside left in it in the next month or so that's worth getting-in-for now? Whatever, the month is half over and if one chooses wrong, one hopes one can get out with just minimal losses. I don't want another bad ride like the middle of last year.
Regarding Europe, who knows? GDP is uninspiring, to put it mildly. Unemployment continues to drag, along with housing, and the two feed on each other. But earnings are looking fairly good. And unemployment and housing are long-term processes.
The big guy investors take all this into account, they are not out to get shaved for no reason, and they drive the market (along with Ben and exogenous events). But the market (investor sentiment) can melt up (not want to get left behind). How to front-run that, as they say?
Maybe Birchtree has it right, and one will not get shaved too much if one gets in tomorrow or early next week. But it sure as hell took its time rallying hard in May and June.
