Sometimes the numbers speak loud and clear to me. This is one of those times.
Wednesday’s advance decline line (a/d line) was the best day since the Trump Rally began. The a/d line was 3,738. The Monday before the election the a/d line was 3,623. In fact, Wednesday’s a/d line was the best since July 8th that came in at 4,259.
The rally stalled after December on the 13th but it has regained momentum the past two days as the year begins. The 10 day moving average of the a/d line has moved back to +522 from a low of -198 on December 22nd.
Everyone is missing the obvious. Massive amounts of money are starting to move from bonds to stocks. There is no way for stocks to move lower currently. Later in Q1 but not now.
From the peak on December 13th to yesterday the S&P 500 fell -1.45%. The pullback lasted 21 days which since the fourth quarter of 2012 has averaged 21 days in duration. This pullback also made it the smallest pullback percentage wise since the fourth quarter of 2012.
Tomorrow looks to be the day those short Dow stocks get their faces ripped off and the Dow blows through 20,000. That is it for now. Sweet dreams if you are long and God help you if you are short. $DIA $SPYIf you enjoy the content at iBankCoin, please follow us on Twitter