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Don't trust this rally; it's a major bull trap, says currency analyst Christopher Vecchio....

  • Tuesday, June 12, 2012, 7:55 PM ET
    Don't trust this rally; it's a major bull trap, says currency analyst Christopher Vecchio. Pressures on global financial markets are too intense to support a sustained run in stocks right now. All it will take is just a few gusts of negativity to derail the entire train.
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This news story has 20 comments:

  •  
    Sounds like he's caught on the wrong side of the market to me...
    12 Jun 2012, 08:16 PM Reply Like
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    Well given that the currency markets and bond markets are far far larger than equity markets and more often right that the equity shrills, he is a lot more likely to be correct than the wall street equity talking heads.
    12 Jun 2012, 09:31 PM Reply Like
  •  
    S&P up 2.6% in the five days since my post with a breakout above the 50 day MA on rising RS. Our friend has more than likely now capitulated and curled up in the fetal position underneath his desk licking his wounds...
    20 Jun 2012, 08:55 AM Reply Like
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    Looking at the pattern it is a bear market rally, it too shall pass and the market shall go down more. Expect choppy action for a week or two and then the drop should resume.
    12 Jun 2012, 08:20 PM Reply Like
  •  
    Currency analyst making a market call, alot of worry out there... Got to think market negative bad news more likely than not, but who knows, things can turn on a dime. Does anyone trust a opinion in the near term, let alone the long.
    12 Jun 2012, 08:50 PM Reply Like
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    Barring any FED QE next Tues, and/or coordinated global QE, the SPX will touch the 1,100's by Aug. Global growth is stalling, as is USA growth. Market is forward-looking and the fiscal cliff and debt ceiling and downgrades will raise their ugly heads again in the next two months. Coupled that with EU, and it will be a repeat of last year. Rebloodicans want Obama to fail and any increase in poor economic stats will increase Romney chances on election day.
    12 Jun 2012, 10:06 PM Reply Like
  •  
    I thought for a long time that the idiotic name calling about politics was not to be found on here... I see that some of it always seeps through though.
    19 Jun 2012, 12:07 PM Reply Like
  •  
    Yeah the sky is falling and the Mayans predicted this all
    12 Jun 2012, 10:21 PM Reply Like
  •  
    no one knows what is going to happen
    12 Jun 2012, 10:49 PM Reply Like
  •  
    Yet another suspiciously well coordinated media event to force YOUR money into subsidizing banks collectively screwed by events in Europe and beyond - Don't dare put your money into the markets these dangerous days and run like hell to the safe haven of the banks. Screw them, Buy into their fear mongering at your own financial risk. LONG American stocks.
    12 Jun 2012, 11:18 PM Reply Like
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    Yes, all the data and comments such as these makes the ordinary mortals like me cringe. But the resilience of the U.S. market makes me feel if a divine or supernatural force (AKA or in the form of Ben B) wants it up all the time. I think we should put our faith on the later!
    12 Jun 2012, 11:29 PM Reply Like
  •  
    http://bit.ly/KAsRBV

    Anyone really still bullish?
    13 Jun 2012, 12:01 AM Reply Like
  •  
    The question I like to ask is:

    If the world's Central Banks got together and issued a coordinated statement saying "we're taking our hands off the wheel - no more "easing", quantitative or otherwise - we're leaving interest rates where the are at historic lows, and letting the economy sort itself out" - what do think would happen to the S&P?

    Right there is the amount of QE hope/addiction priced into the market.

    Personally, I put it over 200 S&P points. I think we'd be sub-1100 if the possibility of QE was off the table.
    13 Jun 2012, 12:16 AM Reply Like
  •  
    I'm sure you're right. I salivate over the possibilities: just imagine being able to buy top-quality businesses for 20-40% less than you can get them today, *AND* knowing that the dividends they're going to pay will have more purchasing power than they would if there were more manipulation! Now if we could just get these asinine idiots out of the way, we could make some real profits. Traders need not apply.
    13 Jun 2012, 02:03 AM Reply Like
  •  
    Ben S. Bernanke will keep the market from dropping through the first Tuesday in November. Don't fight the Fed.
    13 Jun 2012, 12:31 AM Reply Like
  •  
    Anyone watching what the insiders are doing? They have been buying like crazy the past few weeks, as the market was moving down. What does that mean? Are the insiders idiots?
    13 Jun 2012, 12:59 AM Reply Like
  •  
    Eagle they were trying to get more power in there company. If there companies are putting out dividends or likely in future they could sit back fat & sassy and let other people worry about what is going on. Then they wait for the next good dip and repeat. That's how and insider stays safe in a good company. Best Wishes
    13 Jun 2012, 03:18 AM Reply Like
  •  
    Just another Monday Morning Quarterback if you ask me. Look into the future moron, not the past.
    13 Jun 2012, 01:26 AM Reply Like
  •  
    The purpose of the stock market is to raise capital for the productive sectors.
    It became a gambling joint for financial types who haven't grown a tomato in their lives. Leveraging their bets a 100 times without paying interest on their "loans"!!!
    Time for government (all of whom are financial types, unfortunately) to step up and regulate this gambling house to it's foundations, or...

    OCCUPY WALL STREET !!!
    13 Jun 2012, 02:37 AM Reply Like
  •  
    christopher vecchio should be without a job by now...
    21 Mar, 08:48 PM Reply Like
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