Monday, November 09, 2009
Morning Briefing for November 9th: Riding the Market Bronco
Stocks (ES futures; top chart) have broken above their 10/29 and 11/5 highs around 1064, as well as their 10/27 and 11/6 highs around 1070. Those are the levels we need to see hold for an assault on the bull highs. Thus far, we're seeing three markets trade relatively in tandem: stocks, U.S. dollar (Aussie vs. U.S. dollar; bottom chart), and gold.
Thanks to David Korn for linking this article on the bucking bronco stock market. It nicely captures how the market has been able to rise significantly without a significant expansion of bullish sentiment. It also helps explain why it has been difficult for active traders and investors to ride the upward move since March.
I have posted daily and weekly profit targets via Twitter, along with the latest market indicator readings. I update those each morning before the open; interested readers can subscribe to the Twitter feed here free of charge.