BIG GAINS
Lots of headlines and chatter about this being the best week for the SP500 index since March 2003 and we all know what happened then (beginning of bull mkt).
For those who like to buy the top of ranges and break outs, I direct you to this post back in March about buying highs and shorting lows.
Bottom line, your better off buying 10 day lows and selling 10 day highs.
Today's action finds strong internals (+3,000), metals, brokers, semis, airlines, banks and techs. Weak sectors include oils, drugs and consumer stocks(relative underperformers).
Most of my index longs now sold but waiting to put out more shorts as the first few days of the month tend to be strong as new 401k money and other savings finds its way to mutual funds.
And should we have suspected something was up when Floyd just made "the best ride ever" at the Tour de France according to Trautwig, Sherwin and Liggett.
posted by DAVID at
3:15 PM
3 Comments:
The May drop came later than internals were showing the signs of pull back as I commented on the markets forming "Head & Shoulder" since Jan 2006.
Market internals show negative divergences which worked off during the recent pull back.
Keep on eye on Volatility as I commented... the link.
http://clearstation.etrade.com/cgi-bin/bbs?post_id=7535003
Have a good weekend
The "rally" was over at 12 noon. But the three sisters (Q's, DIA, and SPY) all finished the last hour with white candles. Maybe some follow through Mon - Wednesday then down till the Fed meeting?
Monthly strength is a wonderful thing... Wouldn't it be great if it lasted awhile longer?
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