I'm not sure how replacing one Prime Minister with another one is going to fix the dire economic conditions Italy is dealing with, but the market broke out the punch bowl anyway. I guess it doesn't take much to have a party on Wall Street. 
For the second day in a row stocks overcame significant selling pressure to rally into the late afternoon, this time closing with significant gains across the major averages.
Let's get to the charts:
Both NAMO and NYMO snapped back to buy conditions.
NAHL and NYHL are also sporting buys conditions.
Same for TRIN and TRINQ. Two buys.
BPCOMPQ remains in a sell condition and continues to track sideways.
The Seven Sentinels remain in a buy condition on these readings and they appear largely neutral with a bullish bias overall, although the lingering sell signal with BPCOMPQ is a bit troubling. We do have a pre-holiday positive bias helping keep prices elevated at the moment. My concern is that the Christmas rally is already here, which really makes me wonder if it can continue to levitate all the way into the New Year, or whether this is more front-running by the smart money. And aside from what's going on in the EU, I'm also wondering if the 23rd of this month will be a key date for what happens as we get into the holiday season. That's the final day for the Super Committee to come to a debt reduction agreement. Should the committee reach an agreement, will the market rally on? Or is it buying a rumor as we approach that date? And what if they fail to reach an agreement?
I'm just throwing out some "what ifs", but given how headline risk has been driving prices, it's not a stretch to see that deadline as a key date for the market.
I remain in the G fund with my TSP account, but I have a lot of market exposure in my other accounts, so I'm hedged either way.
For the second day in a row stocks overcame significant selling pressure to rally into the late afternoon, this time closing with significant gains across the major averages.
Let's get to the charts:
Both NAMO and NYMO snapped back to buy conditions.
NAHL and NYHL are also sporting buys conditions.
Same for TRIN and TRINQ. Two buys.
BPCOMPQ remains in a sell condition and continues to track sideways.
The Seven Sentinels remain in a buy condition on these readings and they appear largely neutral with a bullish bias overall, although the lingering sell signal with BPCOMPQ is a bit troubling. We do have a pre-holiday positive bias helping keep prices elevated at the moment. My concern is that the Christmas rally is already here, which really makes me wonder if it can continue to levitate all the way into the New Year, or whether this is more front-running by the smart money. And aside from what's going on in the EU, I'm also wondering if the 23rd of this month will be a key date for what happens as we get into the holiday season. That's the final day for the Super Committee to come to a debt reduction agreement. Should the committee reach an agreement, will the market rally on? Or is it buying a rumor as we approach that date? And what if they fail to reach an agreement?
I'm just throwing out some "what ifs", but given how headline risk has been driving prices, it's not a stretch to see that deadline as a key date for the market.
I remain in the G fund with my TSP account, but I have a lot of market exposure in my other accounts, so I'm hedged either way.
