The S&P 500 rose by 0.76% and the Dow was higher by 0.73%. Stocks started the week strongly after declining Friday. The major averages were up over 1% in the morning session.
As we stand now there is far more right than wrong with the technical picture of the market. There are fewer stocks now in basing or advancing patterns than earlier in the year, but the weight of the evidence still gives the bulls the benefit of the doubt. I pointed you toward the 50-day moving averages the past few weeks. Those levels have been touched and successfully tested more than once over the past several weeks. The action at these support levels leads me to believe that the bulls are still in command.
Experienced traders and investors respect and understand the concept of “Don’t fight the Fed”. The basic rationale behind the expression is that when the Fed is printing money, the odds are tilted in the bulls’ favor. Conversely, when the Fed is tightening policy, bearish odds begin to pick up.
Clearly, Warren Buffet understands “management of risk” concept for he too has learned when to “play hard” and when not to “play.”
Until the past few months I've not routinely reported on monthly manufacturing data, regional or otherwise.
Commercial traders of gold futures are showing one of the most bullish conditions in years. They are usually presumed to be the "smart money", and so when commercial traders move to a lopsided net position as a group, it usually means that prices are going to be moving in their chosen direction.
The only markets that have been spared the selloff are short-term fixed income instruments (money markets) such as treasury bills.
The Great British historian, Lord Macaulay, predicted the future unraveling of the United States economy in a letter written in May 1857. Macaulay’s prediction was based on his analysis of American institutions.
It’s easy to forget, especially in the excitement of the recent new market highs, that not only a cyclical bear market, but also a secular bear market began when the market topped out in 2000.
The S&P 500 closed off by 0.59% and the Dow was lower by 0.70%. Yesterday the major averages bounced off support at their respective 50-day moving averages. Today they failed to breach their 20-day moving averages to the upside. The markets tried to rally in the morning but found sellers ahead of the weekend.
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