What A Stud
This
market just doesn’t want to go down.
Each little dip is followed by a rebound, and while the total volume and
breadth numbers are not wowing me to any great extent, I can’t argue with the
tape. While total volume has been below
average on most days the past several weeks, it has risen on up days —
that’s a good thing (see chart).
We’re long the U.K. iShares
(
EWU |
Quote |
Chart |
News |
PowerRating) in my
nightly service, from a price of 12.80 back on August 8, and that market
seems to keep chugging along, in tandem with the US markets (see chart).Â
Our stop is at 12. We also
purchased the Oil Service HOLDRs
(
OIH |
Quote |
Chart |
News |
PowerRating)
this morning at 54.60, with a 52.65 stop (see chart).
Risk to potential reward ratio was very favorable, and part of the
rationale behind the trade.Â
Relative
strength is clearly favoring large-cap names over small and mid cap names.
Indeed, as of yesterday, the Russell 2000
iShares
(
IWM |
Quote |
Chart |
News |
PowerRating) was the only broad-based index ETF that had still
not closed above its 50-day moving average.
Cheers
Â
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