Terry, I got out of most of my longs late last week and I shorted Alcoa on Friday, couldn't resist the near 90 rsi overbought reading and the clear five wave up move. The Dow broke it's narrow channel Friday and the dipsters brought it back in (Goldman Sachs computer buy programs? -g-). Yes i took a ride on NEM, but I'm out now, we also had a five wave up-move in the XAU, which should be met by a consolidation here or a correction. POG hasn't broken it's downtrendline, don't like the divergence here, must catch up.
The tyx looks like it is trying to break thru a bull ABC flag (wave 4 from the October low in rates), which it did on Friday on big spread and closed on the high, though the break was only tiny, would need follow-thru confirmation next week to target rates back to 6% area short term, the Morgan Stanley cyclical index made a nice move to new highs, so why should rates stay this depressed?
The confusion here is that the utility index seems to be trying to break it's own bull flag, which goes contrary to higher rates.
Equity call buying is back to the January top area, but then there are those pesky OEX bears buying lots of puts.
For fibonnacci fans, 4/27 was a 55 fibonacci day from 3/3 low. The a/d line has broken the downtrend from april 98 which has to be considered bullish, but then again you have the "Smarter Bull" cover -g- Another leg up?
My favorite market timer - Stan Harley, who has picked major market turns over the last year and a half within days or a week, turned bearish this last week, after going to neutral in early April.
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