Friday, February 10, 2012

Morning Market Analysis

 The  30 minute QQQ chart shows the NASDAQ is still in a rally.  Prices have risen since the end of January.  They consolidated for three and a half days, starting on February 3, but have been advancing since.

The daily chart of the QQQs is still very positive.  Prices are advancing nicely; the EMAs are very bullish, money is flowing into the market and momentum is positive.  Simply put, it doesn't get much more bullish than this.

The TLTs are right at support; a move lower at this point would be a huge plus for the market.  For good measure, use 114.5 as the price target here.

 The IEIs are also moving toward long-term support.

The above charts show that the market is moving towards a more risk on perspective.  If we see the two treasury markets move through support, we should have a nice boost to the markets overall.


Gold rallied from the beginning of the year until a few weeks ago.  There was a big jump when the Fed announced they would keep interest rates low until 2014.  However, since then the inflation trade has stalled at early December levels.   Most importantly, notice the MACD is about to give a sell signal.

Finally, the above four charts are the BRIC ETFs.  Notice they all have one common feature: they're been rallying since the beginning of the year.  This tells us the risk on trade is definitely occurring in the higher-growth, developing markets.