Thursday, February 18, 2010

Correction Over

All 3 levels I had been looking for coming into the week: S&P 1100, NASDAQ 2220, and Russell 2000 620 are fulfilled / regained. 

At this point I have changed my mindset completely from everything I learned the previous 15 years.  Any day there is low volume now has a 98% chance of being an upward or at worst a sideways day.  The only times we can sell off are on heavy volume.  Heavy volume is no longer needed for rallies that can last for months.

Once you forget everything about the pre 2008 market, it all begins to make more sense.

I've bought some index positions but not as much as usual since access to computer will be limited in coming days.  Until S&P 1100 is broken it will bethe floor, along with the 50 day moving average at 1097 right below it.  There is a gap at 1078 that will need to be resolved in the months ahead, but for now - as long as there is no volume, it's all good.

Big jump in weekly unemployment claims?  No problem. (remember all the celebration about the drop last week?)
No resolution on Greece other than to say "check back in a month"? No problem.
Weak volume? No problem.

The no problem market of 2009 is back.  I, for one, am not going to fight it - learned that the hard way in spring/summer 2009. This bad boy can even rally in the face of a positive dollar.  Russell 2000 up 7 sessions in a row.... no problem.

EDIT 2:50 PM - there is really no resistance on these index charts until we get back to 2010 yearly highs of January.  As long as the 50 day moving averages hold, all dips are now to be bought again.  Outside of a break back below the 50 day moving averages, the next major strategic move will be to see what happens around 2010 yearly highs... if & when.

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