Stock Market Rally Could Have Legs

Summer rallies of 10% to 12% often take place In last weekend’s column I noted that the market was again short-term oversold and due for another rally attempt. But I said, “I’m not ready to turn bullish yet. Let’s see the second-quarter earnings reports due out this week and how the market reacts to them.” I noted that the January – February market correction began when December quarter earnings were released, even though those earnings were impressive, and the more serious April-July correction began precisely when March quarter earnings were released, even though they were also better than forecasts.  However, early last week I did recommend that subscribers at least take profits on our downside positions. Although I am still intermediate-term bearish …