Discuss Market Comments 05/23/11

Seeing negative signs, but is sentiment too bearish? - After a turn-around Tuesday last week, followed by a two-day rally, stocks moved lower again on Friday. The Dow lost 93-points on the day and we now haven't seen a 3-day rally since the market peak at the end of April...

Current Daily Market Commentary

Market Commentary for 5/23/11

 

[JTH]

As always, great stuff Tom! I don't know if anyone is pricing in a strong finish to the month, perhaps this observation will play in our favor after the Memorial Day weekend is finished.

 

[pmcint01]

Tom,

Does S&P need to get to 1313 for the gap to be considered filled?

 

[tsptalk]

Tom,

Does S&P need to get to 1313 for the gap to be considered filled?

Good observation. I actually forgot about that.

1313 would do it. (1312.70 is the exact start of the gap.) I guess the partial fill was not enough last week. I will feel better once its filled so it is not hanging over the S&P as a target down the road.

 

[tsptalk]

 

[pmcint01]

So close now. I'm assuming it would be a good bet to buy a 3X Bull ETF if that point hits.

 

[tsptalk]

I'm biting my tongue on that since trying to catch a falling knife can be so dangerous.. I'll post that on ETF Talk.

 

[JTH]

Gap filled?

 

[pmcint01]

When is it considered filled? Does it have to hit at or below 1312.70 exactly?

 

[tsptalk]

I say it is now officially filled. I look at whole numbers, and like pmc said, 1313 was the basic target.

Thanks again guys, for the heads up. I probably would have saw it during tonight's analysis, but if it holds, today may have been the day to take advantage.