Tuesday, December 29, 2009

Santa Claus in Full Bull Mode

Or should we say Santa Ben...

3 data points

1) We are up 6 sessions in a row in all 3 major indexes, trying for day #7 - the longest winning streak since 2006 which is remarkable when you consider the scope of this epic rally since March 2009.  You'd think we would of had some other 7 day runs along the way.

2) For the sixth straight day in a row, the major indexes are set to gap up at the open.  According to Sentimentrader.com, this is only the 4th time in the history of the S&P 500 that has occurred.  (as I mentioned last week, almost all the action lately has been in premarket - they should close this market down each day at 10:00 AM) [2009 - One Very Strange Year]

3) Also via Sentimentrader.com, this was only the second time since 1950 the S&P 500 has rallied all 5 days going into Christmas.

Mmmm..... mmmm... good!

EDIT 9:58 AM - not that it matters, because I am sure we will be up in premarket again tomorrow, but the above statistics would (in a normal market) give one very large pause.  "Overbought" is one very overused term, but we appear to be getting there.  I will take some long exposure off the table (on the index instruments) as we reach over S&P 1129.  This is a "grind up", not "break out" type of move in the market.  I expect any 'correction' to be mild - if it is allowed to happen - and to hold S&P 1120 as we outlined in the weekly summary.  But are bulls allowed to feel any pain anymore?

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