Great Rally, But a Mixed Bag


I have been showing this wedge on the S&P to my subscribers every night for about two weeks. I think it is the best way to telegraph the trading range that the S&P finds itself in. We have now rallied about 90 handles (strait up) from the recent low that was put in on 9/12. Not bad, but the breadth has been lacking. We all know $AMZN exploded yesterday (classic text book breakout) and $AAPL hit $ 400 yesterday after kissing its sister and coiling all day until around 3:50 PM before finally tagging that round number.

Anyhoo, as I said to subscribers in my Sunday video, the market might have seen some minor resistance (within the wedge ) at the 1203 level¬† It stalled there for a day, but then blasted off yesterday. From my perch, the next target will be the 50 day simple moving average ( 1228.54), then, if it feels like it, possibly the top of the wedge trend line at around 1260. There is not much doubt in my mind that the performance chasing hedge fund dudes may just take out offers until quarters end as they won’t want to be left behind.

Tech leaders like $AAPL and $AMZN are flexing their muscles , but names like $GOOG are just meandering along and will need top start flexing to keep this thing going. Semiconductors $SMH have also showed amazing strength the last couple of weeks as well.

That seems to be about it though, steel $SLX, coal $KOL, materials $XLB and metals and mining $XME took yesterday off. Copper just seems to go down everyday and the chart $JJC looks broken. The financials have bounced, $XLF and if they are lucky, could extend to the 12.40 level, which in my opinion will be a gift of a short spot.

Podiatry is the new growth business in Europe, as they all have broken toes from kicking the can down the road. Freud would have a party with their denial and avoidance behavior and nothing has been solved, still the 4th inning in my book, so to rest on your laurels here is insane.

Play the rip and take a little off as we trade higher, this market is a blast, but it’s still remains an evil mistress.

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