Good morning. Futures are a touch higher, sp +2pts, we're set to open around 1754. Metals are weak, with Gold -$6. Oil is flat, whilst the USD is moderately higher, +0.2% @ 79.32. Equity bulls should be very content with any weekly close in the 1750s.
sp'60min
Summary
*we have econ-data to be mindful of, and there is no QE until next Monday.
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So far this week, the sp is +7pts, a mere 0.4%. Clearly, the bulls should be looking for a Friday/weekly close in the 1750s, that will at least keep all the trends outright bullish.
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Notable early movers
AMZN, $358 + 26 (8%)...and still a loss making company that pays no dividend.
MSFT, +$2 @ $35.70, on very good earnings.
ZNGA +11% in the $3.90s, but still losing money.
Whilst most other indexes all continue to break new historic highs - not least with the Transports in the 7000s, the Dow continues to lag. Those equity bulls seeking broad upside into spring 2014, should have a simple target for the near term - a weekly close in the 15800s..or higher!
sp'weekly8
Dow, weekly
Trans, weekly2, rainbow
Summary
More than anything today, it was the Transports finally breaking into the 7000s that was especially impressive. Mr Carboni was the first to tout tranny @ 7k in the early spring, I followed within a month, and for you regular readers out there, you know my 'hyper-bullish' outlook has indeed included Trans' @ 7k.
Upside across November for the tranny looks to be 7200/7300, which would equate to sp' in the low 1800s. Certainly, sp'1900s do not look viable until at least December - if briefly, before some very understandable year end profit taking.
Dow 15800s, then 16k...and 20k-moonshot?
I have to think that if we see the Dow get a weekly close in the 15800s - which certainly looks viable this November, 16k will be quickly hit, and then the door is wide open to 20,000..as soon as late spring 2014. That would shock the equity bulls, even the cheer leading deluded maniacs on clown finance TV.
Looking ahead
There is a little trio of econ-data to conclude the week. Most importantly, we have Durable Goods Orders. There is also consumer sentiment and wholesale trade. If either of those come in a touch disappointing, it will give Mr Market the excuse it probably wants to sell lower.
*next sig' QE-pomo is next Monday.
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There remains a moderate chance of a further minor down wave to the sp'1735/30 zone tomorrow. No doubt, that will merely be seen as a buying opportunity, and the market will quickly rebound, and climb across next week.
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The main indexes closed with moderate gains, with the sp +5pts to 1752. The two leaders - Trans/R2K, managed gains of 0.9% and 0.7% respectively. Near term trend remains very much to the upside, with the sp'1800s comfortably viable in November.
sp'daily5
R2K
Trans
Summary
Most notable today, the Transports breaking into the 7000s.
Again, I'd have to note that it was Mr Permabull, who was the first in the mainstream (that I know of) to tout the 7000s. Oscar was suggesting that target very early this year. Good call Mr Carboni!
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Primary trend remains bullish on the daily, weekly, and monthly index cycles. There is simply nothing for the bears to get excited about. I realise many are looking at 1759 as a top, but frankly, those same people were calling the same thing at sp'1576, 1600, 1650....etc.
With QE continuing, the broad upward trend looks set to continue into spring 2014.
