Tuesday Dec 27, 2011
Today's title is a play on a book title but also describes how the stock market may not wait till next week to break out. Do any readers recall the original book and its author?
The recent volatility has scared most funds and individuals out of the stock market. They are slowly returning., see Money Flow in chart One on DIA. Here i put the MACD behind the Summation Index, in green. This is a powerful combination. It may well take until the new year but when this turns up we will see a stunning rally that will drag both funds and individuals back into stocks.
Sat Dec 24, 2011 The Market Perspective
I hope you aren't short! The powerful combination I referred to this past Saturday is already taking hold.
Johnson and Johnson
With CD and Treasury yields near nothing investors are buying dividend paying blue chips. That leaves commodity plays out of favor which is why I suggested the latter but one can see the powerful combination taking hold in this consumer staple.
Luxury Goods
Luxury goods including Ralph Lauren in red black bars, Sootheby BID in solid black and
WYNN Steve Wynn's complex are moving together. Did they finally hit bottom all together this week?
Energy complex
For some reason the annotate tool in stockcharts is not working today, that means I cannot add comments, lines, etc. But this is a picture perfect inverse head and shoulders pattern in crude oil. MACD is moving up nicely and Energy Service at top also looks ready to go. It did not hurt the price of oil that a govt official in Iran talked about blocking the Straits of Hormuz, clever traders those Iranians!
It's Official, Over 50% of SPX stocks now exhibit bullish formations
But then we have been predicting this for weeks now.
We hope you enjoy reading TMP and that we have been of constructive use in your decisions.
Happy New Year, stay tuned!
And come on now, surely someone is as old as I am and remember this author.
ha ha ha
Joe Willie Namath
Mr. Broadway Joe himself.
Now I know we are grasping on thin air.
Posted by: Valentin Tristan | December 27, 2011 at 07:08 PM
Broadway Joe, Thin Air, Just some Holiday Fun!
Posted by: Dennis Elam | December 28, 2011 at 06:22 AM
I know just thought it was funny.
Happy holidays
Posted by: valentin Tristan | December 28, 2011 at 06:06 PM