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Futures Down To Flat, Oil Up, Quarter Ending, Be Careful of The Close

June 30, 2008 8:42 AM

I have grown so tired of these supposed experts paraded on CNBC talking up the economy. “The economy has held up amazingly well”. “The economy should rebound”…bla bla bla. I have heard this exact same nonsense for 6 months on a daily basis. The only credible person on their “panel” this morning is Art Cashin with UBS. He seemed far more skeptical of the market and the consumer. Probably because he is a trader and knows the market almost certainly has to go lower. ‘

Anyhow, if we move up today, watch out for a reversal late in the day. I just do not believe any strength can hold here. Whether strength is sold today or in coming days, I am not sure, but be careful. My “hunch” is any strength today will be sold late as it will end of quarter “window dressing”. Essentially this means funds will want to show their customers they are in the “winners” and not in the “losers” going into the next quarter. This obviously is for future sales, not sound financial management. Shocking, I know…ha.

The market is still FAR too bullish here to me. The VIX is still reasonably high, etc. There seems to be no fear as has been the case for months - and they have been wrong, as I have warned.

Written by Tom@StockBlade.com · Filed Under Pre-Open 

Comments

One Response to “Futures Down To Flat, Oil Up, Quarter Ending, Be Careful of The Close”

  1. Tom@StockBlade.com on June 30th, 2008 8:06 pm

    The market went “as planned” oddly enough. Tomorrow should get interesting.

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