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I have some concerns myself about the market
strength but I am looking at going back in why. If
you look at the up/down volume ratio we are
getting some big number days from the NASDAQ and
AMEX. The NYSE is lagging behind a little, but is
building some momentum.
When I look at previous corrections these large
spikes of up / down volume ratio have marked the
bottom. Then we climb that wall of worry as prices
move higher. And with our current fundamental
conditions- slow earnings growth and Asia. We have
a nice wall of worry.
Think of it this way. All the bad news is about
the future of the stock market. Will it go higher.
It's enough to scare the hebejebies out of you.
Then the smart money moves in while Jack & Jill
Public wait. Then when prices move higher it is
time for Jack & Jill to buy in near the top while
the smart money sells it to them.
I think the next good buying opportunity will be
the next pullback assuming we don't break to lower
lows. It does not matter how far we advance. i.e.,
breaking to new highs or up to new highs and then
turning down. It is this base (the large spike in
up/down volume at the exchange accompanied with
strong upward price movement) that provides the
foothold for the next small intermediate advance.
Harley
Bill Saxon wrote:
>
> John Murphy considers that we have seen a Dead Cat Bounce and that the decline
> is not over, potential short lived short term upside not withstanding. This
> from his WebSite.
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