Thursday April 26, 2012
In the last 40 days the volume of trading in Apple has equalled its entire outstanding stock. Now that's a mania.
The rally yesterday was enough to begin turing the internal indicators.
We wondered if the Summation Index would turn above its previous low, it appears that it will.
The strength of Wednesday, mostly on AAPL earnings, was such that a trip back above 1400 looks likely How much more the rally has in it will depend on the weekly update after Friday trading.
The Bullish Percent indcators for all the major indexes are turning up.
After the big day yesterday averages are just slightly off this morning.
Socionomics
Eighteen year periods of stagnation are littered with the careers of failed politicians. The last era took down LBJ, Nixon, Ford, and then Carter. Today Mish reports that the Sarkozy is likely to be defeated May 6. Elsewhere there are border and trade disputes. Even the well run Netherlands fell apart this week. The public is resentful of unkept promises, austerity not prosperity is breaking out all over.
I suspect that Northern Europe, the more financially responsible parent. will split from the socialist free spending party till you drop Club Med countries, and France. France seems determined to vote and spend by borrowing themselves into prosperity. Recent articles in the Economist and the WSJ dbout the success of that approach.
Here, six term senators Orrin Hatch and Richard Lugar have Republican challengers in their own party primary. Utah's Bennett was ousted two years ago in similar fashion.
Throw the bums out is a typical sentimen during such times.
Comments