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Good close on stocks today. Hammer on candlestick after downtrend is
reversal signal probably worth a few days of mostly
higher prices. Asian markets also put in similar patterns (though they
have lower to go ultimately). Think Hong Kong (500-700 points,
maybe somewhat more) can have a fairly significant rally in here which:
a) Will allow US stocks to challenge highs again and
possibly put in final top, b) Put bonds on hold for few sessions before
final rally. For bonds though would be careful with longs
as long term suggests more than another two or so points from the onite
highs will be tuf. Caveat is Japan which is less clearly
s-t bullish outside of candlestick pattern which is s-t though other
interpretations could call for 1000 or more point rally there. By the
way negative correlation in US bonds is greater with Hong Kong than it
is with the Dow since last October.
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