Sunday, June 17, 2012
Cash is a position
The markets have shown remarkable resilience and rallied last week in the face all the bad news coming out of Eurozone. Markets rallied due to rumors once again of Fed Stimulus and coordinated central bank intervention from major economies if the Greek elections become too close to call. That being said, I would have like to see more number of stocks participate in the rally which was not the case during last week's rally. What is important is not the news but how the markets react to the news. Markets are still range bound and influenced by day to day news. Only a breadth thrust will confirm whether this rally has any legs. Once the markets get going there will be plenty of opportunities on the long side to make money. At this point I am sticking with my belief that CASH IS A POSITION.