The nasty close on the indexes gave me the impression that today was not as strong as it looked all day. Then after updating all my charts after the bell I noticed something. The individual stocks in my scan look great. So I would not read too much into a day like this except to say that this was a pullback in the uptrend. How long it last and will go I do not know but I would like to talk about something.
In 1994, The fed hiked rates for a full year. At the end of the cycle the market (SP500) was already drifting up and then went on to rally from 490 to 650 the next year. That market is very similar to this one. This market has dealt with almost a full year of rate hikes, has drifted upward, and is showing signs, with the individual charts, that this market is ready to break lose. If the market is anticipating the Fed is almost done like it did in 1994, I think we could see a nice 20% or so rally.
With todays bad close there should not be this many nice charts with great buying positions yet there are!
Long swing/position trades: GOL DCAI JMDT GEOI ASFI RYAAY BER
On a pullback: JDO -- mentioned this weekend in my last blog entry. A nice pullback to around today's open in the next 5 days would make a great long.
Aloha
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