On the QQQQs notice the following:
-- Prices crossed the 200 day SMA today
-- Prices are above all the SMAs
-- The shorter SMAs are bullishly aligned (10>20>50)
-- All the shorter SMAs are headed higher.
For the last few weeks I have been complaining that one of the other two averages (IWMs and SPYs) were not breaking out of their ranges. That changed today.
Both the SPYs and the IWMs broke through key resistance areas today.
Onward and upward.
4 comments:
And they leave reality far, far behind....
Is this a type of "buy the panic" type thinking? Since a lot of the economic news has been awful, is it Wall Street's thinking that it means that it is time to buy?
I think it's a reflection that Wall Street has not yet come to grips with what is coming for the economy. They seem to still think a shallow non-recession is on order, and that is what got priced in.
Once Wall Street finally catches on to what is coming, look for a big drop. That's when they will price in the future, but it will only happen once they realize what the future holds. So far they are pretending the worst is behind us when in reality the credit crisis is just beginning.
I have to agree with anonymous and nobodyspecial - I must be a lunkhead, because this recent rally boggles my mind. I simply do not understand how our economy can back up these numbers with jobs, consumer purchasing and production.
I will have 2 of whatever those ralliers are drinking.
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