Good morning. Happy Thursday.
The Asian/Pacific markets closed mixed. Europe is currently mostly down. Futures here in the States are flat.
The indexes were near new highs soon after the FOMC announcement two days ago and have stair stepped down since. The selling hasn’t been overly intense. A top-down approach says the market is in good shape. The index charts look just fine and aren’t offering any warnings of an impending top. A bottom-up approach tells a slightly different story. Many leading stocks are no longer leading, and the AD lines tell us less stocks are participating in this Dec rally than the Sep/Oct rally. Short term you could argue for a little backing and filling, but my intermediate term bias remains firmly up.
Here’s an update of the 15-min SPX chart. It dropped to my first target (1235ish) yesterday and could be considered in a falling wedge. Should 1235 give way, my next target becomes 1225.
Tomorrow is quad witching…lots of forces pushing and pulling in different directions. More after the open.
headlines at Yahoo Finance
today’s upgrades/downgrades
this week’s Earnings Reports
this week’s Economic Numbers
0 thoughts on “Before the Open (Dec 16)”
Leave a Reply
You must be logged in to post a comment.
The bond route recently is interesting. It must mean that someone thinks QEII is not what BB thought it would be. OR, the market doubts that the US can pay its debts, credit rating too high at AAA. Who knows what Asia and EU think, but they must have noticed that QE and Congress this week are adding about a trillion dollars in debt. Hell that makes Spain and Ireland look a lot better.
The gold and Silver must be good buys given the fiscal and monetary thinking in the US.
Strangely equities may be better than the PMs, Get dividend stocks in vital areas.
Neal is right. Big oil rules….Why? Well, in case you’re interested, Green technology is not so green. In fact, this sort of technology has been around since the oil crisis of circa 1975-1976. I remember that one because I was going to college then. I had a 1963 Dodge Valiant with 88,000 miles and a 225 slant 6 cyl engine. I remember those long gas lines in the
freezing cold. So Neal is right. Big oil rules until the sun rises and the moon comes out
at night and until oil runs out of the ground. Watch Jesse Ventura’s conspiracy theory on
truTV for other ideas regarding this matter. HW
So if mr. weintraub is seeing a top soon, than maybe we are due for a pullback.