Ditch, the GDP turned out to be higher than the previous quarter, signalling that we're not going to see a recession for at least the next six months, if at all.
I'm also being cautious because the market seems to have found an artificial bottom. It's only a temporary bottom.
Stocks remain overpriced relative to earnings and growth. Lower interest rates are driving the market too high too fast. Inflationary signals are coming up from energy and natural resources.
Looking as key sectors, I think that we're in a rally with the SOX providing leadership and energy/natural resource sectors going into hyperdrive.
The SOX has formed a bullish C & H pattern that should take it up for an attempt at breaking through the 200 day MA - a 12% gain.
The SOX is carrying internet stocks on its back. The INX for example has life support signals lighting up. Myron's CMGI popping up on the Bop meter along with the rest of the sector.
The disk drive index, DDX, also has formed a C & H pattern but right under the 200 day MA. I think it will go higher, taking In's RDRT along for the ride.
Retail also appears to have a heart beat. The RLX may be coming out of its coma. Too early to tell.
Banks (BKX)- also a C & H pattern, resting on the 200 day MA.
Healthcare providers (RXH), Transportation (TRX), Insurance (IUX) and Utilities (UTI) - all very strong charts.
Another C & H pattern on the Biotechs. Similar to the SOX, the BTK has a 54 point run up or almost 10% before resistance from the 200 day MA.
XLE looks good - new highs after testing support at 33 1/4.
XOI is on a tear.
Gold indexes are signalling a major run. Dave in Indy, what's the TATRADER's take?
XNG - Natural gas is testing support now.
Sergio |
