I didn't expect today's market, that's for sure. I was looking over many charts over the weekend and I now have a more bullish short term outlook then I did last week. After today's market reaction, I would be VERY cautious of AG's comments tomorrow. I think we could continue to rally tomorrow morning and depending on AG's testimony, we could reverse and head south if his comments make waves. If he comes out and says the market's valuation is excessive, look out below.
One of the main factors that brought me to the more bullish view was looking at Decision Point's candle splash screen. We can see almost all the charts with a slightly upward trend (by connecting the higher lows on the charts). The strong exceptions are Oil and Gold. Dollar chart looks very healthy and this should bode well for the overall market. Keep in mind this is a very short term view. The trend lines are pretty obvious and a break below should be viewed as very bearish. Until we breakdown, I've a bullish leaning and will play that direction. This could change as quickly as tomorrow afternoon! <g>
Terrific move in the communications semiconductors. UNPH, TXCC, VTSS, GALTF, RFMD and a few others were extremely strong with solid volume. UNPH is hard to call, serious momentum play. I'm wondering if it's not a little over done. I would say the momentum could lift these stocks higher at tomorrow's open. |
