COMP/QQQQ/NDX/NQ all hit their respective 10 DMA's and pulled back. ES is still holding above, mostly thanks to energy, but the tech sector lag is not a bullish sign. Today was a technical day, as we sold off at the open close to daily S1's and rallied up to daily R1's (and 10 dma for NQ) then backed off, holding above pivots.
Tomorrow is another month, we will see what funds have in store now that their are done with this one.
The economic calendar is loaded, construction spending and ISM both at 10AM. Watch the dollar and bonds.
I suspect this rally will not end until investors realize Feds are not going to lower rates. The more the dollar falls, the more the Feds need to support it, especially since oil jumps with it (inflationary). The stagflation scenario is still the best bet going forward and that means bullish on gold and bearish on equities. It will take its sweet time or happen tomorrow, but a deep correction in the stock market is coming. Most likely the first week of January, but it could start rearing its ugly face in December with a few opening salvos.
Tomorrow is another month, we will see what funds have in store now that their are done with this one.
The economic calendar is loaded, construction spending and ISM both at 10AM. Watch the dollar and bonds.
I suspect this rally will not end until investors realize Feds are not going to lower rates. The more the dollar falls, the more the Feds need to support it, especially since oil jumps with it (inflationary). The stagflation scenario is still the best bet going forward and that means bullish on gold and bearish on equities. It will take its sweet time or happen tomorrow, but a deep correction in the stock market is coming. Most likely the first week of January, but it could start rearing its ugly face in December with a few opening salvos.
This entry was posted
on Thursday, November 30, 2006 at 11/30/2006 08:08:00 PM.
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