Rally Won't Last
-- May 27, 2003
Don't let the latest bear market rally suck you in as those "in-the-know" are rushing to get out.
In stark contrast to today's upbeat Conference Board's consumer confidence index, investors are beginning to get nervous. The UBS Index of Investor Optimism slipped to 42 in May after jumping to 66 last month. Obviously, some investors know that this rally is set to break down big-time at any moment.
Even fund flow tracker Trim Tabs remains fully bearish on the market, pointing out that corporate investors have been sellers of stock, not buyers. Additionally, the firm believes the new offering calendar will "come on strong" later in the week and will put renewed pressure on the market.
These brief surges in the market simply can't maintain momentum. This rally will quickly fade, confirming the lackluster enthusiasm of investors. The safe money is in the bear's court, and yours should be, too.
Stocks Soar On Upbeat Data