| Monday, June 10th, 2013 | | | | | |
 | | | | Investing in the Eye of the Storm | | | - Your average turbulent Monday: Nikkei up, Greece down…
- Where's the euphoria?
- Plus: Who is really in control of this market?
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| | | Greg Guenthner coming to you from Baltimore, MD...
 | | Greg Guenthner | Japan's trying to claw itself out of the hole today. The Nikkei—which officially entered bear market territory last week—rocketed nearly 5% earlier today.
On the flip side, Greece is crashing. Here's the scoop via Business Insider:
"In Athens, the Greek stock market is down 5.8% today after a deal to privatize state natural gas firm DEPA failed to attract any bids from investors.
DEPA was supposed to be one of the key revenue-raisers for the Greek privatization program. Failure to privatize DEPA will make it challenging for Greece to meet the revenue targets specified by the troika of EU, ECB, and IMF lenders in its bailout package."
So aside from extreme volatility in Asia and continued implosion from Europe's most damaged markets, all's quiet this Monday morning…
U.S. markets, on the other hand, are unfazed. Futures indicate a slightly higher open today.
Storms rage at every corner of the planet. Yet domestic stocks continue their march higher. That's a big tell. The major media narrative of a potential blow-off top in stocks just isn't holding water right now.
I've told you before that investor sentiment remains completely lopsided thanks mainly to the impact of the 2008 financial crisis. Shell-shocked investors cannot get out of their own way. There is no euphoria—only fear as the market ticks higher.
The market's setting new highs. Yet panic abounds. A majority of the financial media's analysis questions whether the economy can find its footing—and whether stocks can hold their gains.
But there is no euphoria in the markets. There are no dangerous excesses in this economy, as Bloomberg notes:
"Four years into the upswing, the economy isn't seeing many of the excesses that often presage the start of contractions. Inflation is slowing, not quickening. Household debt is shrinking, not expanding. The labor market is slack, not tight."
Remember these points as we start the week. It's time for you to channel opportunities (not fears) as the market bounces higher. As I said Friday, this is your opportunity to buy the dip. Remain objective, tune out the noise, and ride this market as far as it will take you… | | |  | | | | Rude Numbers | Targets, Predictions and Wild Guesses
| | | | $30 | dropped off the price of gold heading into the weekend. This morning, gold futures sit at $1,383… | | $100 | was briefly breached by Bitcoin. The crypto currency quietly dropped into double-digits over the weekend. It now sits at $106. | | 13,514 | is where the Nikkei ended Monday's session. That's nearly a 5% gain on the day. What a wild ride… | | 1,644 | marks the spot for S&P futures early this morning. | | 56% | of stocks trading on U.S. exchanges are now above their respective 50-day moving averages… | | | | | | | | Rude Trends | When to Buy... When to Sell
| | | "I have doubted the markets for a long time now because I have true lack of faith in the personalities who are supposedly 'in control'. Obviously, this has been to the detriment of my personal finances but I'm not going to sweat that," explains a reader. "This market is floating on unprecedented levels of liquidity and hope. Those who overreact to these minor blips are tipping their hand to the fragility of the support structure that is keeping these markets levitated."
We (investors) always have doubts and fears. Every bull market climbs a wall of worry…
Your concerns are legitimate. But the market doesn't follow a script—even when it's written by some very smart people.
However, at this moment, I feel that investors' attitudes are much more fragile than price. Even as investors and the financial media sounded the alarm in mid-May, they could not shake the market below critical levels. Considering the current volatility in Japan and the never-ending eurozone crisis, this is a fairly remarkable feat.
Your best bet is to acknowledge your fears—then simply allow price to give the necessary buy and sell signals. I've said before that if you sold on the first signs of trouble this year, you would have been out of the market since February. Stay objective and the market will reward you handsomely.
[Ed. Note: Join me for a free test drive of the new Rude Awakening Pro today. Send your feedback here: rude@agorafinancial.com - and follow me on Twitter: @GregGuenthner] | | | | | | | Ignore At Your Own Peril | Today's Must Read Links
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