US equities remain on a very broad upward trend, that extends back to the Oct'2011 low of sp'1074. The sp'1800s look viable in November, and if the mainstream get a little more confident, the 1900s are briefly viable before some understandable year end profit taking.
sp'weekly8 - mid term bullish outlook
Summary
The weekly rainbow charts are showing the third consecutive green candle, and this market is unquestionably outright bullish. A weekly close in the 1755/65 zone looks very likely, with the 1800s viable in November.
Netflix - the hysteria returns in full
With EPS of 52 cents, NFLX has soared in AH trading, settling around $40 (11%) higher at $394. There seems little doubt the $400s will be hit early tomorrow, and then you'll start to see the mainstream wonder about $500 next year.
As I noted earlier today, no doubt some bears who were short this hysteria-stock on margin, will have seen their trading accounts get blown up. The thing is, its not like the primary trend in NFLX is down! Why would anyone consider shorting it at all?
A final note on the EPS of 52 cents. Lets call it 50, x4.. giving $2 per year. With a $400 stock price, that is a PE ratio of 200. I could drone on about 'fair value' for page after page, suffice to say, in any 'normal' market, NFLX would be trading around a tenth of the current price.
NFLX, $40, with a PE of 20, and that ladies and gentleman..would indeed be a normal price in a normal market, but of course..we sure as hell don't have that right now.
World Equity indexes continue to look very strong
I could pick any of the ten indexes that I regularly highlight, they all look pretty much outright bullish. Even the imploded Greek economy has a market that is soaring...
Greece, monthly, 20yr
As I noted over a week ago, first target zone is 1200/1300, after that...2500. The other EU PIIGS of Italy and Spain look much the same. For those with eyes on the bigger picture, I think the direction for the US market is pretty clear.
Looking ahead
Tomorrow will see the release of the delayed Sept' jobs data. Market is seeking 185k gains, with a static rate of 7.3%. Those are not bold targets.
*next QE-pomo is not until Wednesday.
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Goodnight from London
