Not a bad little rally starting up. Nice to see the put/call ratio staying high despite a sharp rally. The ratio closed at .93 Friday:
stockcharts.com[e,a]daclyyay[d20000101,20021231][pb4!b13!i][vc60][iUb7!Ua20,26,9!Uj[$spx]][J6534876,Y]&pref=G
Also, looking at the NYSE Tick, the tick spent alot of time below 500 with lots of spikes below 1000 on Oct 7,8,9; yet the Nasdaq and SPX lost very little ground. I believe that is a positive divergence.
stockcharts.com[e,a]jaclyyay[d20000101,20021230][pb6!b20!i][vc60][iua20,52,20][J6441607,Y]&pref=G
Nice to see these positive indicators despite the fact the news still is quite negative on the earnings front and economic front, plus war with Iraq looming closer and closer. The market should move up much further with just a little good news from somewhere since sentiment is so negative. A pullback to Nasdaq 1170 or so seems likely and might be a good point for people to do some buying if they missed that quick 100 point Nasdaq rally over the last two days.
One more comment in edit, the Vix looks good now as it seems to have retested its upside limit of around 50 and is headed down. The market should rise as the VIX declines and so odds favor the longs until the VIX gets down to the 20 or 25 area.
stockcharts.com[e,a]daclyyay[d20000101,20021012][pb7!b20!b12][vc60][iUa20,26,9!Ue20,26,9!Lp39,11,7][J6357448,Y]&pref=G
Tom |
