James, the most compelling fundamental has been the 10 Fed rate cuts, the 12% yearly rate of change of M2;
coupled with the 24% growth rate in M2 in Sept alone, and ENE has put the FED back into liquidity injection
mode.
As Marty Zweig has famously told us "Don't Fight the FED". That stratem did not work for several months in
2001, but It's been a big snowball that was hard for the FED to get going.
SOX at it's 200 dma today.
stockcharts.com[w,a]daclyymy[pb50!b200][vc60][iUb14!La12,26,9]
on Wall street week, I saw something highly interesting on friday, all 3 panelists were calling for a short
term pullback as the market is "overdone"
stockcharts.com[w,a]daclyymy[pb50!b200][vc60][iUb14!La12,26,9]
see how the SPX will probably give a double momentum divergence on it's daily RSI and MACD if it makes a new
high for the move up near the 200 dma. similar for the DJIA.
As I was saying 3 weeks ago, the averages would probably not pull back much at all until they hit those
200 dma's.
ENE has really helped stocks, because the FED has become more accomodative the past 2 -3 weeks, just
look how the 10 year note yield has come down from 5.07 to 4.65. check out how the TXN sold off
at the 200 dma and then has rallied from it's 21 dma
stockcharts.com[w,a]daclyymy[pb50!b200!b21][vc60][iUb14!La12,26,9]
John |
