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MARKET WRAP UP 09/24/10
The title of this post could easily have been written this past January, which should give you an idea that, for all of the talk about the imminence of big moves that are projected to happen in stocks, we are essentially dealing with a dead money market. Bulls and bears alike not only have their subjective biases, but in this case they can also point to bonafide underlying facts to support their respective theses. However, if you tune out all of the noise and short term swings, 2010 is shaping up to be a relatively flat year, and that seems entirely appropriate after the epic moves seen in 2008 (down) and 2009 (down, then up huge).
Regarding today, the bulls staged a bell to bell thrashing to close the S&P 500 up 2.12% to 1148. Breadth was potent, and there were virtually no intraday dips to even be bought. The rally was particularly damaging to the bear case, as they had a golden opportunity to press their shorts after yesterday’s weak finish below 1131. The bulls not only soundly recaptured 1131, but are again bumping up against 1150, which represents a significant mulit-year price level. While some of the leaders continue to have extended charts, such as $AAPL, we are seeing a bevy of other stocks breaking out from healthy bases. After three days in the red this week, any follow through to today’s rally should make it pretty obvious that this market is no longer oscillating, but is instead a trending one where all dips should be bought.
If it looks like an uptrend, walks like an uptrend, and trades like an uptrend, it probably is an uptrend.
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‘If it looks like an uptrend, walks like an uptrend, and trades like an uptrend, it probably is an uptrend.”
Instant classic!
CnW is the truth, for real
that pic is just insanely funny. No more posts from me ever…just that picture each day.
Once again, thanks Chess. Regular reader and learning a great deal from you. Followed your play on nano, nice! Have a good weekend. Love the ptp, great group of bloggers and the members are amazing too!
also, today reminded me of this for bears:
http://www.youtube.com/watch?v=hMtZfW2z9dw
Well even a stopped clock is right twice a day and I called for a 1.5% move up today because yesterday was slightly down! (http://ibankcoin.com/chessnwine/2010/09/23/test-of-bear-manhood/)
Have a great weekend.
Hey Chess,
Happy Weekend! Could I axe you to take a look at one of Fly’s suggestions, MTW? Big volume today but it hardly moved. Glad to see the finnies participate today – I agree they need to at least hold their own.
Thanks!
Smells like an uptrend, too.
Blow off top, 10% move up from here
My trend indicators all called this move from Sept. 3rd. Thus far they have been right, at least this time.
Thanks for the great analysis!