By Market Speculator
Taking a breathier, stocks pulled backas the market digests the most recent move. Stocks did touch overbought conditions and it didn't come as a surrpise the market put in a day of consolidation. During the last 30 minutes of trading stocks found a bid and moved off the lows near the opening levels. A move like this shows institutions stepped in late in the day to support their stocks. Again, it was an important sign to see the support come into the market as the day wrapped up. The market action is showcasing that the bulls are in charge and ready to continue the uptrend.
Leading stocks held up quite nicely today as many of them fell back on lighter trade. It is important to see leading stocks hold up when the overall market pulls back. This is another sign of strength when you have leading stocks pulling back but not leading the market to the downside. It will be important for this type of action to continue; support for the leaders must remain for this uptrend to have legs.
In economic news, we have the May jobs report due out Friday morning at 8:30amEST. Today the ADP report showed more than 500k jobs were lost in the month of May. CNBC once again will have breaking news on the subject, but this rally isn't being fueled by an economic recovery. This rally is simply built upon the printin of greenbacs by Big Ben Bernanke and the Federal Reserve. Simply pumping money into the system will do little to create any sort of recovery as the money is being funneled into non-functional assets. If the money was beeing spent on performing assets we'd have a diffeerent ball game.
Pointing out the New High vs. New Low raio again the market saw only 6 new lows today. Six new lows on a day where the market pulled back quite substantially and the market only saw 6 new lows. This is extremely helpful to see this as it means even when the market sells off we aren't seeing it as weakness. The moves lower are looking stronger and more constructive. Rather than blasting to to new lows we are really seeing some strength. There were 104 New Highs made today, a very positive sign for this market.
We continue to make great gains in this market and will continue to do so. If you aren't already a member of Big Wave Trading, why aren't you? While you wait, we'll continue to load up on our winners.
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