For many of us in the Northeast, it doesn’t seem possible to be in the summer doldrums with significantly below average temperatures recently. Never-the-less, the “seasonally” take it easy attitude is upon us as investors rather enjoy the outdoors then deal with the realities of America’s continuing slide to social, political and economic upheaval. So for the very near term – PARTY-ON DUDE!
U.S. Stock Market – Despite an extremely bearish long term outlook, I’ve not recommended any new short positions since two days after the all-time high in the stock market back in October 2007. This has caused some people to question why not?
The main reason is I feel the stock market is going to go into a multi-year trading range between DJIA 6500 and potentially as high as 10,500 (but average around 8500 or below). I don’t expect sharp rises and falls within this perceived trading range and therefore outright puts or calls or long or short ETFs aren’t appealing to me. (more)