linear move...
Friday, July 8, 2011 at 07:34AM Another day, another rally as the rocket surge continues this week off the ‘feelin’ comfy’ sentiment expressed here to lead into the trading week. In this premise, we avoided techncials-“resistance’ talk and the week has blown out every ‘R' discussed out there…(Head & Shoulders,1339 April 8 high, 1344 Feb 18 high, Feb-June highs and many more.
A day after shrugging off negative news, the market buoyed off positive US ‘macro’ news (ADP,Jobs claims, June surprise retail #’s) tossing in some Global positives as well (Japan, China). In all, 'transitory’ is winning out!.
There is not much the Bears can do when it’s a 2 headed ‘bull’ coin being flipped day after day!. All they can do is wait for the overdue profit taking, today’s rally into Friday’s NFP# may have played right into this. It’s inconceivable this straight up rally won’t succumb to profit taking, but we’d expect it to be shallow with dip buying format to return. Whisper #’s are now close to 200k, so hope ADP was not another headfake.
*Note, some ugly 6-10pt intraday reversals in SODA ~$70's, TZOO, CRR (precursor to broad market profit taking). Also, a few mid-caps tech ‘blow ups’ AMC, but they might be looked upon as ‘company’ specific items (and mostly handset related) and thankfully not ‘bigger’ cap pre-announcements, which was the worry.