After a month of treats, global markets are in a bit of a trick today. Obviously things are extremely overbought, and after busting through the 200 day 'simple' moving average as if it was not even there Thursday, we have pulled back slightly below it today on the S&P 500. I'm posting a chart with both the 200 day simple and exponential moving averages to highlight the variance between the two.
Despite the now bullish setup in the market, I would find this week one to hold cards close to the vest as we have the potential to gap up or down each and every day with the bevy of economic data headed our way. That said, it would seem likely that those who missed part or most of the move will be antsy to 'buy the dip' if there are any substantial ones, as performance anxiety hits them hard. There has been a 180 degree change in attitude from fearing big losses, to fearing missing out on upside.
On an unrelated note, former Goldman head and ex NJ governor has in under a year run MF Global (MF) into the ground, and the company just filed for bankruptcy. One wonders what sort of salary and bonus he is receiving for doing such wonders. I assume the going rate for taking a viable company and in under 12 months destroying it, is $20-$30M.
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