Now that commodity margin requirements and position limits have been disseminated and selling contained, the sector is stabilizing. That has brought the post-expiration dip buyers out in force today.
Steve Job’s situation is becoming more clear yet the stocks sponsorship will not quit as Apple is up over $6 today. But the rest of the anointed leadership stocks are lagging. Mega cap tech old school tech is doing well. There is a bounce in the oversold speculative small cap sectors. Financials are holding their own.
The divergence between Nasdaq and the Primary markets is smoothing after just a few days of correction. If this continues, then the markets will have sorted out some of the most egregious excess while keeping the primary indices unaltered.
I’ve expected to get to Dow 12k as early as last Friday. We are getting very close today and the print seems to be a foregone conclusion. It will make for yet another headline to bring the masses back to equities. Will it work? Well, we’ve already seen equity inflows this year for the first time in what seems to be years. Remember, most of the investing public will only buy when it seems easy. After a 30% up move, maybe the bomb-shelter doors are opening? The sky seems blue, but remember, the background radiation stays high for a long time.
The market is clearly on a mission to get to 12k this week, perhaps even tomorrow. With the promise of economic recovery dancing in investors heads, expect even another marginal new high as we approach SPX 1300 again. But realize that the biggest laggards of the market are now the official leaders. You know what they say about that.
In the meantime, enjoy manic, merger, mutual fund Monday but be careful out there!
If you enjoy the content at iBankCoin, please follow us on Twitter
We are back to the usual, up 8, nothing to worry about. Just buy and hold and watch your stock move 20% in a month.
Fairly vivid “bearish complex head and shoulders” pattern on 30 and 60 minute SPY charts.But it needs the dollar to find support,for it to work.
Usually, complex head and shoulder patterns are a bit more reliable than regular H and S patterns.
I see what your talking about. We need a bone-fide negative divergence in the daily chart. In fact, I see one developing for the first time since November…Not formed yet, but a new SPX high would get us there.
Drugs are bad
yes,,,,we can see.
keep beatin the shit out of the naz and all the pension funds will be in it,in no time soon