very small double top (twzzer top), so might see pullback here, I just wish the pullback won't be too large.
Attachments
Like to read more of my commentaries? Please subscribe my Daily Market Report. Subscribers can find all the members only posts HERE. StockCharts members, please vote for me HERE, thanks.
Gap up when not many expected. Bears fighting the inevitable. Though institutional investors are showing distribution, the price is not going down as much. The $2 billion a day seems to be working out OK. Someone mentioned rebalancing portfolios before the end of the quarter (was it Al?) that seems to make sense from the market behavior. I say we go higher before Europe closes.
the philly fed state coincident indexes were released today. I've discussed them a month ago, so to sum it up: a level of under 50 in the 3 month diffusion index usually occurs only before recessions. a level of 30 or less occurs usually at recessions:
h[url]ttp://1.bp.blogspot.com/-Aut9ntaINrs/UDOX5jhd4cI/AAAAAAAAPnQ/37kai25t3iM/s1600/PhillyFedStateJuly2012.jpg[/url]
the july level was 34, august's level is 24. i believe the us is entering a recession right now, and ECRI and Hussman will be vindicated in the future (although their initial timing was wrong). considering the lowered guidance, lowered estimates and probably lower government spending next year, the market is now relying solely on the fed for rescue. i don't believe liquidity alone will be enough to justify the earnings multiples that will be required to maintain current levels.
Like to read more of my commentaries? Please subscribe my Daily Market Report. Subscribers can find all the members only posts HERE. StockCharts members, please vote for me HERE, thanks.
well, at least target reached. wait. a consolidation here would be perfect.
Attachments
Like to read more of my commentaries? Please subscribe my Daily Market Report. Subscribers can find all the members only posts HERE. StockCharts members, please vote for me HERE, thanks.
Relative strength
The OEX drop is unusual
It may be the asset-allocation portfolios divesting some stocks for quarter-end
They have until Friday to re-balance
Disclaimer: I am not an investment advisor. This is just my opinion NOT investment advice.