Nothing like at 400 point, 4.65% up day on the Dow to put the bears on notice that the market is indeed rallying off the lows of a little over a week ago.
On a relative strength basis, cash and bonds are still favored over stocks. However, the NYSE Bullish Percent Index is up above 20% bullish, and is moving in on the 30% level. The downtrend has been broken and I’ve started buying stocks again. A resounding break above the 30% bullish level would mean that the game is back on and the market may begin to see recovery in a broad number of sectors.
Some of the sectors to look for ideas: banking, finance, biotech, REITs, and food/beverage. I’m focusing on dividend paying stocks in these areas.
It was a very good day to be long stocks. Unless you’ve been listening to the apocalyse-loving uber bears, you should have made money today.
If and when the Dow hits 10,000 this month, I’m going to sound off a reverberating barbaric yop and smash a clown-faced pumpkin with an 8 lb sledgehammer.
If you enjoy the content at iBankCoin, please follow us on Twitter
