Yawner today. I got back in SRS at $81.50. I think the mkts are a little extended here. The Fed releases their policy statement Wed. I'd say they are going to leave rates unchanged and will start addressing the inflation problem. At this point, it seems they are late to the party to cut further and if they did they would be risking further inflation. I don't think the markets are going to like the news this week and I would say that by Friday (Monday at the latest) this bear mkt. rally will be about done.
May through August is historically not the time to be long-- there just isn't much to move the markets higher, especially this year. I think the bears are going to use this to their advantage and really put the hurt on the bulls through most of May. True, its an election year, but I don't see any of them as good news for the stock market. Perhaps by August we will be done with the discounting to see a little year end rally. We will know then.
As for the rest of the week: I'm going to be out of town until next weekend. I'm going to be checking in periodically to see what my positions are doing and to see if I need to add anything. For the most part I'm just setting up for the next leg down and I'm assuming that we still have not seen the worst. What I fear most right now for the U.S. is a major terrorist attack. They like to strike when our economy is most vulnerable-- and I really hope that we don't see one.
best,
B
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