From strength to strength
The market grows increasingly, and increasingly obviously, bullish, as it trades from one strength to two strengths and so on. In previous posts, I have shown how the budding upside will manifest itself, and now investors can see it for themselves: a diminution of the downside pressure (fewer new lows, increasing new highs), a flattening of the price trend, positive price reactions via the news response syndrome (see many data points from last week, especially Friday's solid upside reversal), the inability to cluster downside days in excess of 3 or more, price breakouts above resistance areas and the moving averages (beginning with the 50 day sma), etc etc. I have shared how the bottom will build, so you know what to expect. And now today's opening indications point to more strength.. but will the markets hold its opening gains throughout the day and into the close?
The markets show the true opportunities lie on the long side. Much work remains to be done, so adjust your sights accordingly (depending on your time frame).
I have more to say on this topic, but not before Wednesday morning at the earliest.
-- David M Gordon / The Deipnosophist
Labels: Market analyses