sp'weekly8b
Summary
So.. with continued gains, we still have a second consecutive green candle on the weekly cycle. Upper bollinger is offering the 2020s in the immediate term, although that seems unlikely until after the 3 day weekend. By mid September, the weekly cycle will likely be offering the 2030/40s.
New high for the Dow
It was only late this evening (its hard to keep track of everything!) that I noticed the Dow had broken a new historic high of 17153. The monthly candle on the Dow is now also a clear bullish engulfing candle...
Despite a lot of bearish chatter out there, a bullish engulfing candle is something to be taken very seriously. Right now, we also have one for the Sp'500 and Nasdaq Comp'. Even the laggy R2K has climbed 4.9% this month, and is now just 4% shy of the July high (1213).
Equity bears need to go stare at the above chart for a good long while.. and ask themselves the question '....so...err....what is the primary trend right now?'.
Looking ahead
There is very little due tomorrow, just some bond auctions and the EIA oil report.
*there is QE of around $1bn, bears beware.
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A tentative long position
The indexes look over stretched right now, and I am certainly not in the mood to go directly long any of the indexes. However, the oil/gas driller stocks have started to show some initial upside power, and I decided to pick up a SDRL position this afternoon.
As usual, I try to 'clear the decks' into each weekend, and will look to drop SDRL this Friday, not least since its a 3 day holiday weekend.
Goodnight from London