Buying interest continued among investors, possibly on expectations of a debt ceiling deal being reached – which did occur over the weekend although not finalized yet.
Despite expectations of another Fed rate hike in June, our technical analysis of chart data indicates institutions continue to be buyers at this time.
As with the prior week, mostly rising prices improved many of our long position gains or at least reduced our losses on those that have failed to gain any traction recently. Shorts remain gainers, but neutral.
A reminder that the major indexes, subject of most financial media focus, are hopelessly rigged and long ago ceased being representative of the broad market. While the MSM is joyfully noting the S&P500 is at a new yearly high, only those few mega-stocks are gainers – the other 493 stocks in the index have an average gain this year of only 1% and many are at or near 52 week lows – which you don’t hear about.
The true picture of the stock market is one struggling to rise off of recent lows, amid much investor pessimism over Washington’s anti-business influence.
Upward price bias may continue this coming week in the form of a relief really over a debt ceiling “crisis” being avoided.
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