Hey, It’s A Rally

Hey, it’s a rally. It doesn’t matter to me if it is
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I only care about the reaction to the news.
So far, so good. Volume is heavy…which definitely helps. Let’s keep things in
perspective. Without trying to throw cold water on today’s move, one must
realize that it is just one day…and most importantly, there remains gobs of
resistance as the Technology areas try to rally
higher. There have been too many fake-outs to not pay attention.

For our purposes, there are no setups in the Tech
area. Just about everything is coming off their lows after monstrous drops.
Interestingly enough, I am not looking to long but looking to go the other way
as the rally runs into resistance. We shall see how that goes over the next few
days and weeks.

This rally does come at a cost. More vicious sector
rotation. Look at tomorrow’s New High List. I expect that it is
actually going to contract. How can that be on such a good day? Simple. If you
recall, I have been harping about the fact that the A/D line was being skewed by
non-operating bond funds, S&Ls and Regional Banks.
They now show tops. I urge you to look at several names as they have been
pummeled in short order. I have been stating that often when a group tops out,
it just doesn’t correct, it plummets. Here we go again.

You can add
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PowerRating) to the fold.

I would not ignore this action in these Financials.
I have a sneaking suspicion that this is forecasting higher bond rates