THE CLOSE
Anyone watching the markets today can see pretty clearly that there are plenty of bulls who want to buy market dips. The opening dip was immediately bought and the gap on all the major markets were closed within a few hours.
The dip on the Fed minute release was also quickly bought and then the big dip on the news of the plane crashing into a NYC building was bought big time bringing the markets quickly back to the daily pivots.
Market internals opened the day with about 1k more losers than winners on the NYSE and NAZ; then quickly rose to the unchanged level and are closing with about 1,200 more losers than winners.
The Semis have been strong all day and are closing green by about 1.4% and the brokers have bounced from solidly in the red to near the unchanged level for MER MS and GS. As long as those two sectors hang tough, its going to be hard for bears to bring the markets down.
T Boone's bet of 70 before 50 is not starting out so great as oil slides under $58. I think he will ultimately be correct and this winter we may be asking how we didn't buy oils stocks in light of all the recent take over activity (prediction for the winter) yes, takeovers galore.
The VIX and the VXO continue to trade near the 11/12 levels and have not given any signals in quite some time. Eventually they will go up and the markets will go down, but for now the bulls are completely in charge as every dip is quickly bought.
posted by DAVID at
3:55 PM
2 Comments:
A Big NYC Hello SHARKIE !
I don't write to much, but have been reading you blog for about 3 months now- and I ilke ! its better then others-smiple,timesaving,informative, and to the point- Nice Work-
Well I'm board watching the news of the plane going into a building, not too far from my building-I think I'll stay in the office a bit longer tonghit, and chase the mail intern-
Anyway ...where do you think oil is heading? thats it and keep up the nice stuff---
HEY HON I NEED INTEROFFICE NOW !!
I'm buying all dips except oil - maybe after the election but even then I doubt it - probably wait until the traditional time - January. We're swimming in the stuff - even OPEC can't scare the specs into loading up.
Everyone is afraid that if the price starts going up too soon Bush will open the SPR (which we, the American Taxpayers have been filling to overflow levels) and that will just be enough of a hammer to destroy a couple of more hedge funds.
Using OIH as the proxy we have a classic triangle forming with buy stops from 126 to 129 and sell stops from 120 to 117. All depends on which get hit first.
All the above - my humble opinion.
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