Short notes on market!

By Gary Kaltbaum-June 29,2016

After scanning Monday night, we came to a simple conclusion about Mr. Market. We thought that markets were stretched and extended to the downside beyond the beyond and that the end-of-quarter window dressing (illegal) and the pre-holiday trading would get the market rallying back up some of the nasty drop. So…two big gaps to the downside and two big gaps to the upside have markets getting back a damn good amount of the ugly…which now calls into question whether the drop was an out of position, not expecting, total surprise which caught everything everybody off guard. We suspect there is a chance that that’s all there is to the reaction to the event in the U.K. and suspect markets are just back into the range they have been in for a very long time. (You didn’t really believe all the scare tactics?) After all, the market’s modus operandi the past couple years has been big, nasty, quick drops and than pixie dust action back up.

Before the “Brexit,” the Dow and S&P were close to the tips and close to actually moving out of range. There is still plenty of work to do but amazingly, we are quickly getting back up there. Keep in mind, most other indices are much weaker. We suspect we will soon go into backing and filling mode as the massive resistance is again ahead. Brexit schmexit!