Seems the Bulls are in control and I'm just sitting here scratching my head! Of course we have all been following the trend, and not fighting the tape.......right?
China's CPI is overheating, Michigan Sentiment is down again, Business inventories are higher, Retail sales are higher, Europe is .......well who the heck knows! JP Morgan beats....but stock takes a dive, Google beats and moves up nicely, Steve Jobs dies (moment of silence please) and Apple stock price goes up (What?), Europe is ..........well who the heck knows, Occupy Wall Street Protests go Global, the VIX is finally under 30 for the first time since early August, and some big players need to show a profit for the year and times a wastin'!! Just sayin'.
Mix all that together and it spells..........it spells........it spells......I have no idea. Overall things globally look pretty grim. And yet hopes of a Santa Rally, A European TARP, and a Greek Miracle seem to have the Bulls excited! Yea, makes sense to me. But what's up with the anemic volume on this rise to the top of the channel? Where's the strength? So remember, as PT Barnum once said, there's a sucker born every minute. Going long now is somewhat akin to buying at the top. So make sure you're ready if things go south. Not that they will, just sayin'. Seems to this skeptic that the proof is in the pudding and it'll be day to day for me. Yup, I ain't holdin' overnight til I get some confirmation one way or the other.
The charts show that we are at the very tip top of the trading range on the SPY and the DIA and the Russell 3000. The Nasdaq Composite has already broken out. Now, many a man would argue that tech and small caps always lead the way. And there is some truth in that statement. But so far only the Nasdaq has made it over the hump. No one else has come along for the ride to confirm the move. Just being cautious. As I said the proof is in the pudding and this skeptic is still waiting for the actual breakout to occur. It could happen in the next few days or not at all.
CURRENT MARKET TRENDS
Long Term (Weekly Chart) – Sideways (Trading Channel)
Medium Term (3 day chart) – Sideways (Trading Channel)
Short Term (Daily Chart) – Up
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