Thursday, May 06, 2010

More Fun Times

Well, that was the most exciting day that the stock market has seen in a while.

Right now the S&P 500 index is 7.3% below it's rally high of 1217, which puts it smack dab in the middle of "small correction" territory. In addition, at least two sentiment indicators suggest that the market is near a short-term bottom. However, it would never occur to me to invest in a stock rally at this point, because the market is still highly over-valued, seasonal timing is poor, and the global economy is still in a financial bubble that has yet to burst. I remain in cash (and short-term treasuries) and I'm not going to bet on either a rise or a drop at this point.

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