This year has been a frustrating one for investors, as equity markets came racing out of the gate only to lose steam as much anticipated job creation failed to materialize and much of the developed world found itself facing a massive credit crunch. Every development that seemingly indicates a robust recovery–such as the impressive earnings season–is quickly followed by more discouraging news to keep markets in check.
Major U.S. indexes have spent part of 2010 well into positive territory while also dipping deep into the red, currently standing about even on the year. As the summer months draw to a close, many investors are beginning to predict that more sideways movement is in the forecast. There is a growing feeling that while there is not enough fuel for a upside rally, the situation is also not so bleak as to bring on a double dip recession. That creates a unique and often frustrating trading environment. “Stock investors can be forgiven if they feel like they have traveled great distances to go nowhere” writes Ben Levisohn. “A range-bound market doesn’t have to be an unprofitable one, however. There are…trading strategies that, when used properly, can help investors make money in the short term.” [click to continue…]
U.S. and global equity markets have enjoyed a months-long rally from their March lows, fueled by improving macroeconomic conditions, surprisingly healthy corporate earnings, and renewed consumer confidence. Following this tremendous rally, we are beginning to see indications that the market rally is running out of steam, as many sophisticated investors are beginning to pull out [...]
