With June just around the corner, optimism was ‘bustin’ out all over Wall Street Friday after the Thomson Reuters/University of Michigan survey showed consumer sentiment, income and spending were all on the rise.
Making the climate all the more appealing for investors, the dollar turned lower – with the weakness driving oil , metals and resource related stocks higher. (Rather than the greenback, it appears investors are turning to the Swiss franc as the world's "safe haven currency".)
On top of all that, the Financials ETF, climbed back above its 200-day moving average on Friday.
Considering the bullish trends - will June be a month of stock market fun in the sun?
According to Steve Grasso you'll want to break out the sunblock -- and the hedges -- because you may well need protection.
Time to put the whimsical puns aside, because if history is any indication - the market action in June may turn rather serious. Steve Grasso put together a chart of gains/losses during the month of June every year since 2007, and it's not promising. Take a look.
Year Move in the S&P 500
Source: Steve Grasso, Stuart Frankel
In other words, typically June brings good weather but a bad market.
Although Grasso concedes the current bias in the market is positive, he thinks we see a higher S&P next week – but then downward pressure as we get deeper into June.
Trader Steve Cortes largely agrees. In fact, he thinks the very same negative catalysts are lining up this June that took the market down last June. “Europe’s problems," he says. "We’re largely repeating what happened last year. I think we’re going to have a very tough June."
Trader Pete Najarian is a little more bullish – but just a little. He thinks the market wants to melt up in the near-term but he also thinks the S&P is range bound. “We’ve got a base around 1310 but it looks like the upper end is somewhere near 1330,” he says.
What do you think? We want to know!