Space, with the Fed's moving as they have, it sure turns the balance of the technical indicators to the bullish side. I have a nagging discomfort in my belly, however. If you remember, I thought we would bottom late this month early in November because of expectation of an additional Fed easing and rallying to at least mid January. What bugs me is why did the Fed feel it was critical to lower rate on Thursday before expiration in a "surprise move" (they have not had "surprise moves for some time) when the equity markets according the Fed's own measures are still overvalued? Is there a catastrophe they were trying to avoid? If yes, will that show up sooner or later? Right now the easing will create more liquidity, but it may go into financial instruments instead of the economy, and I am not sure if that is what they wanted. Well, we'll see, right now, the turnips are squarely bullish, and like particularly networkers like ASND, CCRD and CSCO, companies like XIRC, HAUP and THQI, and you got to turn buillish on some financials (at least for the short term) like MER and CCI. I also think that IBM, DELL, CPQ and GTW will do fine in the next few weeks. I even turned back to be a bull on GE (VBG). This change in the monetary environment will turn companies like INTC, MU, RMBS, AMD, VECO and AMAT to the bull side as well, at least for a good strong rally in these stock, IMHO.
Zeev
Zeev |
