Charles Nenner, founder of the Charles Nenner Research Center, said that those who are buying now in anticipation of an improving economy have missed the bus by four years. Good news gets bought once by the smart money and expectations that the macro picture will improve were a bullish catalyst in 2009. Now it's time to sell the news.
"We took all of its equity exposure when the S&P was at 1,510 so we wouldn't have to deal with all this mess." Nenner said.
If the market close more than a couple points below 1,544 on the S&P 500 it would be an indication to Nenner the market is ready to roll over in a big way. As of mid-day Friday, stocks are bouncing between 1,540 and 1,550; perilously close to what Nenner would consider a technical breakdown.
"I think the beginning of May it starts to get scary," says Nenner.
No comments:
Post a Comment