Back on May 12 we identified a nascent bounce in stocks. The market may be launching a repeat. Short term traders might profitably buy, but that would equally well depend on astutely timing the exit point; risky business both ways. I’m not playing. Longer term investors who may have already been looking to reduce exposure might find a good opportunity in the days immediately ahead. This rally could extend for a few days to a few weeks. But it’s very unlikely it’s a new bull market; I continue to expect the bear market pattern of lower lows and lower highs.
Bonds in general and treasuries in particular are bouncing nicely as well. This bounce likely has more legs. As discussed more fully in Weekly Outlook, I think Treasuries are or soon will be in a new bull market … higher lows and higher highs. I am playing this.