Yields dropped back down below 4.7% and everyone is happy again. Techs charged into the close with NQ within 6 points of its November high. Since weekly R1 is at 1845.75 and we are right there, there is a shot at 1864.50, monthly R1. The DOW and YM are not quite as excited, now trading below the 5 DMA and monthly R1, current overnight resistance (12764). The tight range of the VIX kept sellers at bay and once we got past the first couple of hours, it became evident that shorts would not gain enough traction to threaten bulls. This low volatility logjam will have to be broken one day and I was hoping it would be today so that we could get 100 YM point trading ranges again (it was 80 today, but you had to be short from yesterday to catch that, which I gave readers at OI, short from 12807, exited at 12745 for +62). We will have to wait. We could even see two markets unfold, a stagnating range bound DOW and a high flying NDX. NYSE once again found resistance just under 9455 and closed at 9433. Still a number to watch. The QQQQ head and shoulder discussed yesterday is looking very unlikely at this point, unless of course we get another inflation scare. INTC closed below its 50 DMA, CSCO barely above. What saved the day was good old MSFT, GOOG and of course AAPL. Everyone wants to own AAPL now and since there is just not enough inventory to accommodate every single hedge fund in the world, the stock has to shoot up. That one looks like it's on its way to close its January 17 gap at 94.95. For bears and bulls alike, this is a market to trade day by day, although ISEE closing at 118 supports further gains from a contrarian point of vue. Funds and analysts might be uniformly bullish, but there sure are a lot of folks still buying equity puts.
If Feds keep up this silly dovish talk on inflation, gold will climb to 750 within weeks, if not days. It is utterly absurd and January's CPI numbers prove it. All they are doing is creating false hopes for rate cuts in May and a violent reaction from stocks one day, probably early March.
If Feds keep up this silly dovish talk on inflation, gold will climb to 750 within weeks, if not days. It is utterly absurd and January's CPI numbers prove it. All they are doing is creating false hopes for rate cuts in May and a violent reaction from stocks one day, probably early March.
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on Wednesday, February 21, 2007 at 2/21/2007 07:46:00 PM.
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