The economic news out of the U.S. today was not quite as robust as we had been lead to believe it would be. GDP for the 4th quarter came in at -0.1%. And, considering the levels at which these markets are trading and the problems which will have to be face regarding the sequester & spending cuts, we think there is a good chance that these markets will roll over in the short term.
There is a yawning gap on the S&P at around 1426 and we think there’s a fair chance that this gap will get filled in during the coming weeks. Many stocks have had an extended run during the past few months and they’re at or near their highs for the past 52 weeks. Most markets around the world reflect the same patterns and we are content to wait for more economic data ,which will be released during February, to give us a better indication of the underlying strength or weakness which exists in all of these economies.
Meanwhile, it’s a marvelous trading market with significant moves in individual stocks both on the upside and the downside and traders must be prepared to do their homework with their daily scans & technical assessments to find the promising opportunities!