Market Outlook
Indeed there is a divergence between the DOW and NAZ, but the pieces are falling into place for a tradeable year-end rally. While the market may selloff again, bull markets just don't end on a wimpish note.
Non-tech DOW bellweathers like GE, BMY, PFE, MER are close to all time highs. Techs like IBM and CSCO at new highs and breaking out, INTC putting in a bottom, momentum turning positive for MSFT ... together these four can hold the NAZ and turn the tide for the moment. But the prudent should take profits on strength, for earnings jitters will be severe this time. Asian flu not withstanding, sustainability of current rate corporate profits will be difficult to validate.
So, Michael, what say you? Oh, MOT and TXM ... battered stocks usually take several tries to break thru their 200-day mav from below ... regardless of mf. btw, WIND's data is as of 11/26 ... glitch in your program, my dear? |
