constructive day:
markets rally on no volume since everyone is watching World Cup. SPY closes above 20 day MA. It almost looks like this is day 1 of a new uptrend. But perhaps I'm jumping the gun.
People are going to grumble about low volume but the last time I remember a rally emerging from the dust... it always runs on low volume at first. It's not a big sign of weakness.
Leadership was everywhere: RIG, CMG, AAPL, SNDK, even BP is going up. Small caps were great.
2 stocks were up for every 1 down.
Crossing above the 20 day MA for SPY and QQQQ and finishing at the highs changes the technical charts quite a bit.
I was talking with a trader who was short from two days ago -- he watched the markets melt up and finally closed at the highs -- taking a big loss. Many people are now thinking the markets can only go down. People are anchored in the short term past. But a rally can emerge at anytime. The past is irrelevant.
coal and steel sectors also regained 20 day Moving Averages. Bearish sentiment is at extreme highs (which is bullish... )
I think next week is really going to set the stage. Follow through next week is going to be met with huge buyers as they realize things are moving up. Otherwise, it'll be a spectacular failure and selloff. So it's a bit scary to just go all in.
I'll see what all the bloggers are saying this weekend. I imagine some people will be cautiously bullish now. We shall see.
Nice to see XIDE really push higher. That's one I do hold for managed account.
