End of First Quarter 2013 in Sight

Well, this year is flying, must be I am getting old. Or it may just be excitement from all the highs on the markets in the last week.

As I woke this morning my stock ticker on my phone was showing a sea of red in all areas except financials.

I think we will seee more volatility in the markets in the next couple of weeks as the quarter ends and the large institutional buyers lock in those lovely profits from the rise  in the markets this year.

This means a lot of short term swings for everyone but it will settle come May.

Prediction for the week Ending 30th March 2012

This week is a nice week to end the first quarter of 2012.

Because it has a clear cut ending there is little vaguery as to what the effects of the second quarter will be.

My theory is that all the major players in Wall Street will aim  to lock in as many profits as possible this week.

So the bull run on the market willl continue Monday and Tuesday.

Wednesday March 28 to the close of business on Friday will see some downward pressure on the markets as institutions seek to close positions and pull in profits.

Look for major sectors that improved dramatically to fall in this last week of the quarter. Sectors such as Financials,

There will of course be lots of reasons given as to why the market will fall, from Europe, through housing concerns, consumer confidence to threat of war with Iran.

Most of these reasons may be made to sound plausible, but over thirty years of experience I have seen this scenario many times.

It happens far too often to be pure chance. It must just be institutional profit taking.

Be prepared to follow the roller coaster down a little, it can be a good buying opportunity in late Friday trading as some bargains may be had.

Monday April 2, 2012 will see some recovery as the climb through a slow second quarter will begin.