The week of February 5 was devastating for the bulls. The week of February 12 was devastating for the bears. I have a feeling that the shortened week we’re approaching after Presidents’ Day will have the torch back in bear hands. Sure, we might have a little more strength, but we are so deliciously close to major gap fills, I am looking ahead to next week with anticipation (and, admittedly, some anxiety). These markets, in spite of having greatly different components, all pretty much look the same. The emerging markets:
The high yield bond fund:
The junk bonds:
And the financials:
The one sector which isn’t anywhere close to completely its gap fill is real estate. I’m not sure if that means there’s plenty more strength left, or if the sector is so weak that this is the best it can do.