Equity Market Re-Entry Prices
If you are out of the equity markets as a result of stops last week. The question of re-entry conditions arises.
The US futures are up strongly this morning as a result, no doubt, of the nearly $1 trillion European bailout package for Greece and other contingent country credit problems (Spain, being the largest economy of concern). We take note of the fact that the US stock market continued to fall after enormous bailout packages. However, each time has a different fact set. This bailout may be the proof of a failed international rescue begun in 2008, or it may simply be later stage cleanup of a healing process well on its way to completion.
If the fundamentals are acceptable to you (and that varies widely by person – we are a bit on the wait and see side), then these charts may be helpful in determining when to re-enter.