Signs that the recent selloff is aging include improving Nasdaq relative strength, extreme bearish readings in terms of the number of stocks below their 50-day moving averages, and a very high put/call ratio (closed over 1.2 Friday). Also, recent strength in the dollar has found price meeting up with its 200-day moving average, a possible area of resistance for the dollar (which has been moving opposite equities). A retracement of dollar gains may suggest a bounce in equities.
Our strategy is to sell the bounces as vibrant market gains since March 2009 unwind.
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Forecast Update for May
4 weeks ago
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