Oh when the Bulls, go marching In,
Oh when the Bulls go marching In,
Lord how I want to be in that number,
When the Bulls keep marching in.
The pundits shout,
The Media screams,
They say this rally is going to fail,
But those Bulls they keep on marching,
Oh when the Bulls go marching in.
I keep saying it over and over. The Bull is here!! He started his march the beginning of January and he is snorting and moving forward step by step. Yes, the media screams this, the pundits scream that, but the Bull aren't listening. Moody's downgrades a few more countries and adds a negative outlook for Britain, France and Austria. Yawn, the bulls already knew that was coming. Greece is doing an "orderly" default. Ho-hum, priced in!! No, this rally is not as maniacal as the running of the Bulls in Pamplona, but none the less, these are Bulls moving forward and refusing to stop. They seem to be determined to keep on marching forward regardless of the headlines. It's as if I can hear the lead Bull screaming "Steady as she goes boys!"
Why is it that no one wants to talk about the fact that things ARE better. Things ARE improving. And the "issues", especially those with Greece, are already baked in the pie. (Gee, have I said that before?) It is evident that Europe will have to go thru the same process we did to solve their financial crisis. They are doing that, with Germany leading the way. Contrary to some people's opinions, China is not dead, and things are growing over there (yes, they will have a little inflation, but so what!!) Of course the media pundits can't say any of this publicly, as it makes Obama look good, and we can't improve his election opportunities!! "Oh, no, things are getting better!" cried the Elephant, that damned Donkey is going to win again!
U.S. Economy - Improving
European Crisis - Resolving
China's Growth - Alive and kicking
Sometimes even the Carney man has to scream........ "Folks, we HAVE a WINNER!" Yes, we have a winner and the trend is UP! And as we all know, the trend is your friend. FOLLOW IT!
The Charts
First, I'll talk very briefly about the VIX. A lot of pundits, including Chicken Little, and a nameless man whose initials are Peter Worden..... talked about the "spike" in the VIX last Friday and the horrid drop in the Dow. OH NO! THE SPIKE IN THE VIX! OH NO!! THE DOW DOWN 89 POINTS!! THE SKY IS FALLING! And I pointed out the insanity of those remarks. Those media boys and market pundits really know how to wring every drop of excitement from a dry sponge. The VIX dropped back under 20 Monday and is still under 20. The DOW has regained that HUGE loss from Friday without much effort. Yes, the VIX is stuck on the 20 EMA and might likely bounce between that and the 50 SMA for a bit. But so the heck what!?!? Friday's spike was not a calamity. The rally was not trashed by the little one day bump in the VIX. No, the VIX excitement was a boring as the enormous 89 point drop in the DOW. (Yawn)
The DIA. Still in an uptrend. Still bumping up against the upper resistance line. Pushing, bumping, waiting for a breakout and another move up. The Bulls hooves are pawing the ground as they trudge forward. The Bulls are snorting as they await the starter's gun for the next move up. Until proven otherwise the trend is up and as we all know .........say it with me ......... The Trend is your Friend! On an intraday basis Monday was a gap up opening, a drop and recovery the rest of the day. Tuesday we wandered downward until the end when the buyers came in and bought things up. Gee, it's almost as if they were buying on dips! Where have we heard that before?
So follow this trend. Buy good stocks on dips. And keep those stops in place! Trends don't last forever and if you are greedy like me, you like to KEEP your profits. Here's the "surprising" trends.
CURRENT MARKET TRENDS
Short Term (Daily Chart) – UP
Medium Term (3 day chart) – UP
Long Term (Weekly Chart) – UP
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