Tuesday, 7 May 2013

3pm update - holding gains into the close

There would seem little reason why the market won't be able to hold the current gains into the close. SP' is +7pts @ 1624..only another 175pts to go. 11% across 3-4 months? It just looks as though the market is in the early phase of a relentless new up wave.


sp'daily5


Summary

We've seen this kinda action before, and it can last MONTHS.

The notion that this is merely the tail end of an up cycle...errr, no,..I can't see that.
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I have to say it is a disturbing thought of sp'1800s by late summer, but hey, at least if I'm right, I can choose NOT to short it, maybe go long sometimes, and then be able to launch a major re-short in the autumn from the 1800s - which is a hell of a lot better than shorting from 1500s..

*consumer credit data due @ 3pm. Look for higher debt, but hey, that's a good thing, right?
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Gold...is a problem, clearly outside of its bear flag/channel.


 back at the close

2pm update - Transports soaring into the stratosphere

All the indexes are holding moderate gains..and building upon them. Yet again though, the Transports is the real star, and is now +1.5%, and is making a play for a close in the 6400s. Truly incredible, and that will be a mere 800pts short of my August 7200 target!


Trans,daily


Summary

The old leader is leading...with the fourth consecutive significant daily gain.

Literally..the sky is the limit.
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I remain content on the sidelines.

On no basis can I understand why anyone would be shorting the market right now. The market mood is not in the least bit gloomy. Quite the opposite.

*VIX is a touch higher, but...that's to be ignored.

1pm update - still moderately higher

Most indexes are moderately higher. Tech is a little weak, largely due to AAPL. Precious metals are mixed, Gold is -$20, but Silver is unusually not following. Oil is back to flat. There remains of course the usual latter day algo-bot melt still viable.


sp'daily5



AAPL, daily


Summary

Back!
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*I thought I'd highlight AAPL, even though its a touch lower, it is still significantly above its recent lows, and the monthly chart looks floored. Perhaps a back test of the 50 day MA @ 435 ?

Equity bears are facing a real problem if AAPL just rallies across the next few months. I realise AAPL is not the entire market, but if AAPL is rising, you'd have to think the rest of the techs will 'generally' follow.
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VIX update from Mr T



**consumer credit @ 3pm, although maybe the market can just spin more student debt as a good thing?