Today was like passing a kidney stone the size of a golf ball on no meds, while being dragged naked by a Tesla through broken glass.
The McClellan Oscillator which measures oversold/overbought thingies is way the hell oversold. I haven’t seen this reading since the Age of Pericles, but then again, the market has been in a mondo uptrend. The SPX could pretty much land on 1900 and we would still be uptrending our faces off.
Here’s a peek at McClellan. Its oversold, it can stay that way I guess.
SPX broke the 50 day like a piano falling through cheesecloth. Ugly site. 1900-1925 will be your spot top lay the wood and start buying everything. Uptrend still super awesome.
Here is a more dramatic closeup of what happened today.
If you haven’t sold, selling here is probably dumb, I think 1900 holds, maybe even 1925 and then the market will embarrass the shorts once again. I wont go into all the reasons why we sold off, doesn’t matter, lets just say we were due. Until Yellen really destroys our economy (it will happen), we can still play that always fun game of buy the dip.
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In keeping with the “go where the action is” concept. Look to China. What other country actually lets you see the air that you’re breathing while you walk through vacant cities and shopping malls.
Anyhoo, the stocks don’t care. Ride the tiger.
Here’s a peek at the FXI
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“It is not wise to find symbols in everything that one sees. It makes life too full of terrors.” -Herod from “Salome” by Oscar Wilde
Right now half the folks are looking at the Russell 2000 and are predicting a trap door break to the downside. Invariably they feel that if this happens then it will also bring down the Dow, the S&P and Nasdaq with it. Maybe Jupiter and Saturn too.
Others see the Russell as a potential buy spot because with the exception of July 17th, its managed to stay above its 200 day simple moving average since it pulled back in May. It is also managing to hold the uptrend line.
We will probably find resolution this week, because there is a bunch of data being released. The schedule between Wednesday and Friday includes second-quarter GDP, a Federal Reserve decision, July payrolls, the July Institute for Supply Management manufacturing report and July car sales.
This should provide gobs of fun for both bulls and bears alike. Things could start spinning like a top next week, so good luck out there.
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