Oversold Bounce Should Stall In the Next Few Days – Stick With Shorts – Place Your Stops


This morning, stocks are rebounding. There were not any concrete developments in Europe and I feel this move is an oversold bounce. As I’ve been mentioning, this is a very bullish time of year from a seasonal standpoint and any shred of good news will attract buyers. European officials are trying to accelerate fiscal integration. European authorities would have more power to enforce fiscal discipline under the plan. This effort sparked a 4% rally in Europe and that buying spilled over to our market this morning. In my opinion, these “sweet nothings” will pacify investors for a few days. Once the …

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