Resnn Investment Advisor Protection Diversification
Alternative Investing for Protection and Diversification
  • How Are We Different
  • Performance
  • In The Media
  • About us
    • Our Story
    • Our Founder
    • Our Philosophy
    • Our Process
    • Our Responsability to You
  • Blog
  • Contact Us
June 6 2012

well …maybe … walk for the hills instead??

Today was a stellar day in the market price wise.  All the indexes closed up over 2% on news that Europe is going to finally start taking their financial situation seriously.  Banks leds the race up.  It is a GREAT example that news can change the perception of all players at a moment’s notice and that you have to be nimble.  People that were sitting out because of their fear, once that fear was removed … they have no reason to sit on the sidelines.

With that said, I’m not calling my suggestion yesterday outlandish just yet.  One day does not make a trend, and the volume today although better is still much lower than the down days over the past few weeks signifying that there is not full support by all parties quite yet.

News driven bounces many times can fizzle, and given that most participants were short going in to today … we could have had nothing more than a short squeeze.  Although short squeeze’s certainly create a fast positive move, once all the shorts are out, there needs to be people buying on the long side in order to keep the momentum alive.  If there isn’t, we will stall and eventually continue downward.

I am still sitting on the sidelines currently.  Although today’s movement was widespread by most stocks, I need a little more reassurance than one day.  If we get a strong follow through day tomorrow OR over the next few days (with accompanying volume), I will be back in the market.  Of course, I don’t treat my entrance into the market as an all or nothing event … I will be wading in with smaller positions until I clearly see what we have in store. 

This very possibly could be a bounce and not a true rally, but the bounce could EASILY go up 4 – 8% (up to the 50 day moving average for sure) before showing signs of weakness again.  We have a lot of resistance to get through and until that is completed, we watch and possibly partake with some skepticism.

I leave you with a reminder that just a few weeks ago, we hit a short term bottom and had a very strong one day bounce (5/21/2012) which resulted in a 2.4% gain for the day in the Nasdaq.  After that we slowly broke apart  and dropped another 3%.  Don’t get too excited for today just yet, I certainly like today’s action, but we need to continue with the same strength over the coming days and weeks in order to convince the big money to start moving back in.

run for the hills bulls need to be more convincing if they want this

Related Posts

Blog

Buy and Hope – free download at Amazon.com today only

world-markets-performance-2008_cut-version.png

Blog

Why a ‘Balanced’ Portfolio May Not Work

Blog

Is the stock market showing signs of an impending correction?

About Author

Randall Mauro

Randall Mauro

Randall Mauro is the founder and Chief Investment Officer for Resnn Investments. He is a Registered Investment Advisor, registered with the SEC’s Financial Industry Regulatory Authority (CRD number: 6105715) as well as the Colorado Division of Securities.

Recent Posts

  • Buy and Hope – free download at Amazon.com today only
    August 13, 2014
  • Market Wrap – week ending 7/11/2014
    July 11, 2014
  • In this business, if you’re good, you’re right six times out of ten.
    June 30, 2014

Categories

  • About Resnn Investments
  • Alternative Investing
  • Blog
  • Buy and Hope
  • Do It Yourself Investing
  • Freebies
  • In the Media
  • market analysis
  • Protection and Diversification
  • resnn investments trade signals
  • technical analysis

Archives

  • August 2014 (1)
  • July 2014 (1)
  • June 2014 (9)
  • May 2014 (7)
  • April 2014 (4)
  • March 2014 (4)
  • February 2014 (4)
  • January 2014 (4)
  • December 2013 (4)
  • November 2013 (4)
  • October 2013 (1)
  • August 2013 (1)
  • July 2013 (3)
  • June 2013 (3)
  • March 2013 (4)
  • February 2013 (13)
  • January 2013 (8)
  • June 2012 (4)
  • May 2012 (9)
  • January 2012 (5)
  • December 2011 (12)
  • November 2011 (16)
  • October 2011 (15)
  • September 2011 (13)
  • August 2011 (24)
  • July 2011 (5)
  • June 2011 (17)

Contact us

We are here to answer any question you may have about our services. We will respond as soon as we can.

Contact us
RESNN Investments
  • About
  • Privacy
  • Contact
© Copyright - Resnn Investments, LLC
Resnn Investments LLC is a Financial Adviser / Registered Investment Advisor
located in Highlands Ranch, Denver CO Web Design by Cleverativity