Tuesday May 31 2016
Perhaps my instincts were right betting on a pullback last Thursday. When it did not materialize, I exited and went neutral for the stock indexes.
It looks like the market is anticipating some higher interest rates though I don't see bonds pulling back.
REITs
that is an obvious head and shoulders after the run up from the February low
Closed End Muni Fund
Here is the same pattern in a closed end municipal fund. It too has had a great run the last few months.
DOW Daily
The summer doldrums of trading have officially begun with Memorial Day behind us.
Recall in my newspaper column this weekend I suggested we really needed a new high in the Transports to confirm a Dow Theory buy signal.
This could be a pullback before advancing again, hard to say at this point.
Two Hour Dow
The two hour chart bounced off the 34 bar line in afternoon trading. So let's watch for a re test of today's highs tomorrow.
Floserve FLS
Note the reverse head and shoulders bottom here, FLS is a buy on the weekly and monthly charts, monthly just turning up. This is a fabulous commpany.
Cliff Natural Resources
After correcting from the run up CLF had a whopping 39% up move today, buy it.
Mesabi Trust
MSB had a 9% move up, buy this as well.
XES Energy Service
We have lots of readers following the energy markets. After the price of oil doubling since February, the XES has an important test with the 50 bar MA
on the weekly chart. I am guessing it will be turned back but we shall see.
OPEC is meeting the next few days, is OPEC toast, I suspect so.
The membership is totally fractured with the weak sisters like Venezuela/Ngeria on their last leg and the House of Saud still powerful. And Iran the bad boy who will deal with no one, having sensed Barack's anything to make a deal sound good for his legacy in his last year.
More tomorrow.
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