Don't Bet the Ranch on Summer Doldrums
Source: GoldSeek, Rick Ackerman (4/12/10)
". . .far from being ready to collapse, U.S. stocks are in a blow-off phase"
Whether you believe the statistics or not, memories of last summer's powerful rally should still be fresh enough to dampen the ardor of sellers who think summer doldrums and seasonality are likely to turn the months ahead into a snooze. Summer or not, we are living in interesting times, and there is nothing to suggest that hot weather is going to slow the pace of interesting news of the kind Wall Street seems to thrive on these days.
So what are the odds that stocks will show the same kind of anomalous strength this summer and fall that they showed last year? It's hard to say exactly, but our gut feeling is that, far from being ready to collapse, U.S. stocks are in a blow-off phase that is likely to steepen over the next month or two.