COMMENTARY FOR WEDNESDAY'S MARKET
SO FAR ....
A classic recovery rally with the DOW putting on 300+ points in the
two days, catching most off guard.
We made the higher-lo/higher-Hi pattern off of the double bottom we
called last week, and except for the fact we've moved up to far too
fast, have set our selves up for a good 2-4 week rally. Watch for a
possible pullback tomorrow after the open which will probably see a
continuation rally, AMD came out with some great news tonight which
will probably fuel and early rally before sellers come in to
"Sell-The-News" as opposed to buying the rumour as they have been
doing with the SOX(semiconductor) index which is now up 13% since May
10th...like I said, too far too fast.
Not only was there institutional volume along with the mutuals, but
we had participation from some of the sidelined smaller investor
money that has been squirreled away for a rainy day in low interest
bearing CD's.
This is expirations week and Wednesdays very often reverse Tuesday's
actions, so be prepared for a profit taking selloff, particularly in
the Techs and SP500 which both left gaps behind in the frothy wake of
their breakouts to the upside. The Bullish Pennant/Flag formations
proved themselves accurate harbingers once again, now we need to see
if we can extend this short term pop to the intermediate term. The
old adage is to sell the market in May and hold till October, but we
still think there are a few surprises left in store for investors as
all that pent up momentum is put to work.
ALL OF THE MCCLELLAN SUMMATION INDICES TURNED today, for the first
time in over a year, we have all indices in sync for the intermediate
term...too early to tell if it will stick,BUT this market didn't
stand a prayer of a real rally until we saw these get in synch. One
day does not make a trend, but this is one I have personally been
waiting to see.
As I said over the weekent, more important than all of this analysis
I believe is the action of the CoT report this week that shows
improvement in all of the commercial positions as of last Tuesday's
close, which was the lowest level of this market since last
September. The Commercials have started a stealth buying spree,
seemingly indicating their belief that the bottom is near at hand.
The NASDAQs still remain the weak sisters, and will retain their
volatility and be the last ones to spell a real recovery, but their
interest by the Commercials is indeed gratifying to see.
Our profit stops we gave you this weekend were hit on the Bear
proxytrades and followers should be flat all but the DOW which is
still on a buy signal. With the best Bear proxy fund up about $175%
on a closed basis we can't feel bad about taking a few percentage
points as a sacrifice to the Bull God. These were not reversal
points, but areas where it was no longer prudent to hold the Bear
Funds and time to lock in profits. Check the ProxyTrader report.
NYSE new lows came in at 50 Friday and improved to 24 today ..nice recovery.
- Forums
- ASX - By Stock
- from Stock Market Crash Index alert 13/5
from Stock Market Crash Index alert 13/5, page-2
Featured News
Featured News
The Watchlist
BGD
BARTON GOLD HOLDINGS LIMITED
Alex Scanlon, Managing Director & CEO
Alex Scanlon
Managing Director & CEO
SPONSORED BY The Market Online