Summertime usually brings a relaxed atmosphere to the stock market, but probably not this year.
Not just to restate that the new world is plugged in, connected, and active 24/7, this summer is full of possible catalysts for dramatic action. So far this year the U.S. stock market has been trading in a very narrow range.
The longer a market stays in such a technical formation (range) the more likely that the breakout, when it finally comes will be dramatic. It’s just that the break can be either up or down.
Some possible catalysts that could act upon our market are a resolution of the Greek crisis, emerging market breakout or breakdown, interest rate increase, a political miscalculation by China in the South China Sea, the Ukraine and other geopolitical events, and, of course, the unknown. Looking more deeply at market action, we still see positive money flows indicating that the breakout, when it comes, will be to the upside; but no one can be absolutely sure. So stay tuned.
The Lonely Bull