This has been an impressive move, up 8.2% on the S&P 500 since "Turnaround Tuesday" two weeks ago. With the benefit of hindsight we can now clearly see that the retest of 1040 was a 'double bottom' - I thought at the time it was too cute to be that easy, but that's what happened.
Granted the lion's share of that move was in 2 sessions, but the hectic pace (despite low volume) continues. Doubting low volume rallies has been the bane of bears for quarters on end - and they know better now than to fight what the textbook says should be fought. While the action remains 'constructive' one would think before the quarter end push to higher prices, we get at least some small pullback first at some point this week. Quite a few of the leading stocks have begun to turn parabolic already (just like that we've gone from fearful to greedy - amazing. Spain anyone? Who?).
Speaking of parabolic what the heck is going on in the sleepy utility sector? I have about 10 different stocks doing this! When utility stocks trade at huge gulfs versus the 20 day moving average, it has one scratching their head... I wonder what historical correlation has the PhDs triggering HAL9000 to pile into utilities.
Best Of FMMF
- 1: Warren Buffet Piles on Europe
- 2: [Video] Jim Chanos Returns from Europe, Even More Bearish on China
- 3: A Chart to Open Our Eyes - Staggering Changes by Multinationals in Employment Behavior 00s vs 90s
- 4: Futures Blasted on Dexia Woes... and Poor Preliminary China Data
- 5: Market Working to Worst Thanksgiving Since 1932
- 6: Et Tu, German Bonds? Poor Auction Raises Eyebrows