{+++}We saw a light volume melt up today as we heard much positive rhetoric from Europe telegraphed throughout the day. The European ETF’s did well, EWP, EWQ, EWG just to name a few. Europe led us down and now, with some good news, (or less bad news) it led us higher.
I took some names off but left a 1/3 position. Why? Because we have been to the alter before with this nonsense only to be sent back down. Maybe this time will be different.
The end of the first half of the year is upon us in about two weeks. Many subscribe to the “window dressing” concept, whereby hedge funds feel the need to chase performance into the quarters end. It does happen and with Europe off the precipice it is very possible that that will be the outcome. Hedge funds averaged about negative 4% return for May, so they NEED to be long if the market continues the rally. We’ll see how it plays out.
The only name that hasn’t triggered yet is BEXP and it is getting close.
I’ll see you in the morning, put these on your long watch list.
