hi Bob g.
couple things on my mind (while im at work) <g>
1) I heard on the radio (some stock radio, for those living in the LA area, it's 1600 AM. Anyways, I heard on the radio that the Nasdaq has been leading the DOW for the last few years. I concur with that thought. Not only did NAZ lead this rally, but also lead into this correction as well.
2) you're post on the fundamentals aspects on the mkt was a good one. However, as you stated, it is only good for the long-term picture. I think what we are seeing here is just a short-term rally --> 3-4 weeks at the most (but who really knows). I do know that today was the 2nd day of rally and early to say "correction is over", but i have confirmation with my indicators that we are close to a rally. This is further witnessed by the breakouts of the NAZ abv 1800 resistance, NDX breakout of the resistance lines that i drew. Those resistance lines were very strong (tested), and we blew them away.
So, to summarize, although fundamentally the mkt is weak, but technically we are ready to rally. As you know, i hardly look at the fundamentals. I think the fundamentals is what is scaring us. "no growth, we can't go up any higher. we are overvalued". Too confusing IMO.
3) Im not expecting a long or large rally.
just some thoughts. |
