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.