Friday June 29, 2012 6:53 AM CST
We observed that December 2011 offered a handy line of demarcation, the selling was done by year end.
That may well be happening now with the June 30 end of quarter and end of the year for various hedge funds. Their selling of perceived losers to produce an 'eye candy' list of winners for shareholders appears finally over. As I write this morning
the DOW has rallied from its intraday low of 12450 thursday to 12602 on the close and up another and in pre market is trading at 12660
We suggested oil turned the corner Wednesday but had to sit through one more day testing, this morning is up 2.89 to 80.58. Readers recall I doubted we would hit 70.
Gold is up 2% to 1581. Yesterday Yahoo featured an article predicting gold was headed to $700 due to deflation, this is typical of what one reads just before gold takes off.
But the real news, the Euro is up just over 1% against the Dollar. as the headline reades
Europe Summit Surprises with Bold Moves
Those bold moves had been telegraphed with higher lows in internal indicators as well as various funds of commodities.
I am quite aware that sseveral readers thought we were on the wrong track, and many stock trends are still down but..
I suspect the Euro Rally we have anticipated is now underway which will rally stocks, oil, gold and silver.
Our bets are placed in just that fashion. Thanks for reading the Market Perspective.