Picking Up Where Friday Left Off

And the rally continues. Every time I tuned in on CNBC today they were focused on the DOW. It's edging towards the 10,000 mark, and many believe it's just a matter of time (soon) that we hit it.

Count me among those who are believers, the action continues to suggest more strength is coming in the days ahead. I'm looking for weakness soon as we're overbought and I thought we might see some selling today, and we did. Just after 2:00 p.m. the market took a moderate dive, and just like so many times in previous weeks it came right back. We may have closed well off the highs of the day, but who cares. A trend is a trend and it's been up for months.

The Seven Sentinels continue to look good and may be signaling more upside before we take a breather, but even if we get some downside action soon there's no reason to believe it will be any worse than what we've been accustomed to over the past few months.

Here's today's charts:

All four signals here remain in a buy condition and you'll notice that NAHL and NYHL bounced back strong after Friday's action.

All three here are also on a buy. That's 7 of 7 in a buy condition. So the system remains in a buy condition.

There were very few moves initiated today by any of our folks on the tracker. That means our top 25% are still holding over 90% equities. Good news for the longer term.

 

[CrabClaw]

CH, it looks as if the $NAHL & especially the $NYHL are becoming more volatile with wider swings. Do you think there is anything to be read into that? Just curious, thanks again!

 

[coolhand]

CH, it looks as if the $NAHL & especially the $NYHL are becoming more volatile with wider swings. Do you think there is anything to be read into that? Just curious, thanks again!

Yes. Remember that we are coming off the lows from March, where many stocks were at historic lows. As this market has recovered, many of those stocks are have been, or are now, hitting yearly highs. This means we are breaking out and could continue to do so. At least for a little while longer. I think the volatility is a product of profit taking and an accelerating exhuberence for stocks playing against each other.