Discuss Market Comments 12/10

Taking out resistance, but stretched- Stocks traded in a tight trading range again yesterday, and while the Dow closed down 2-points, the rest of the indices finished solidly in positive territory...

Market Commentary for 12/10/10

Current Daily Market Commentary

 

[Guest]

Sitting on the sidelines, waiting for the pullback that every site I trust has been calling for, having missed almost 4% in gains in a very short time, I'm about ready to make a "capitulation buy" just to end the pain of watching this steady melt-up go forward without me.

THIS IS ALMOST CERTAINLY A SIGN THAT IT'S TIME TO GET OUT OF THE MARKET, SINCE MY TIMING HAS SUCKED LATELY.

;-)

 

[tsptalk]

This is what they call climbing the wall of worry. Our sentiment has been bullish, but not extreme. We're at 1.93 to 1 and we saw over 3 to 1 in early November before a pullback. Big bull markets can see 4 or even 5 to 1 bulls to bears.

It's tough to chase and patience usually pays off, but the market seems to be shaking off bad news and moving high. Perhaps getting a portion of your money in now would help you?

 

[valleymd]

I don't know much about technical analysis. I have learned pretty much everything I know from this website.

Anyway if you look at the S&P starting at the last week of April through the first week of November there is a huge cup with about the same peaks near 1220-1225. The rest of November was the handle, and December has started the breakout. Anyone else see what I am seeing?

AND...

What is the upside target for a cup and handle formation?

 

[tsptalk]

I see it.

I don't know the upside of a C&H exactly, but it could be the size of the cup from top to bottom - similar to an H&S.