Good morning. Happy Wednesday.
The Asian/Pacific markets closed mixed – only Seoul moved (up) more than 1%. Europe is currently up across the board – there are several 1% winners.
Futures here in the States suggest a flat and mixed open for the cash market. This comes off yesterday’s light-volume inside day.
The S&P has been up 10 of the last 12 days, and all the index except for the S&P small caps and Russell small caps are very close to their highs. Volume has been on the lighter side the last 2 weeks, but as I’ve talked about several times the last couple months, I’m not sure how to read volume any more. So much of the volume is computers trading back and forth with each that high or low volume doesn’t necessarily mean “votes in favor” or “lack of support” for a move.
The trend per the index charts is up; the trend and side of the market we should be playing via analysis of individual stocks charts is up. Other than for quick day trades, I see no reason to go/be short. I certainly don’t advocate picking a top…even if the rally makes no sense. What’s the old saying about the market staying irrational longer than you can stay solvent?
Warnings continue to be offered by the banks and home builders which are nowhere near their highs and the dollar which seems to be firming at 75. My bias of course is to the upside, but we are by no means completely “in the clear.” More after the open.
headlines at Yahoo Finance
today’s upgrades/downgrades
this week’s Earnings Reports
this week’s Economic Numbers