MKW

Wednesday Outlook: Commodities, Global Markets

Yes, I agree. Note what happened after the three day run from 870 to 930. The market went sideways for a couple of weeks then plunged to its March, 2003 low.


On Jun 17 08:44 AM DDPearson wrote:

> On Jun 17 07:01 AM MKW wrote:

Wednesday Outlook: Commodities, Global Markets

It's actually gratifying to finally see Mr. Market get his head out of you-know-what; however my sense is that things are going to get interesting from here. My current thesis uses the market from 12/2/02 to 1/6/03 as the model. It was two months off what would eventually be recognized as the ultimate low of the tech bubble burst. S&P 500 hit an intraday high of 954 (sound familiar?) before retreating to roughly 870, then blasting back up to 930 again - and I mean blast, it took three trading days.

Let's not forget, it's JPM that's been almost solely responsible for the "emergency" large-block buy orders in SPY which have provided us almost daily stick-save entertainment for the last couple of months; and it's JPM which still has its secondary coming up at the end of June. I have a funny feeling that they've finally come to the conclusion that it would be too difficult to keep the market propped for that long and so are content to let it drop. Easier to make a repeat of 1/2/03 - 1/6/03 to elevate their share price.