Commentary: Paul Ebeling On Wall Street
Last week we saw the Bull charge to new highs on the S&P 500, as the financials came alive again mid-week.
We want to see the financials in the front, as they signal growth in the economy, and growth it is the Key indicator for continued Northside action.
We know that when growth stocks are moving up it is because of economic activity moving higher too.
After a 5 wks of the market moving higher many of the stocks in ther leading sectors are overbought in the near term, and the overbought issues are the leaders that most participants know well.
But, there are many stocks building good patterns after moving back to the support that sets them up for new moves North.
When the leaders break the money rotates out and finds other names come in and make their moves.
It is difficult to pick stocks when the markets are at these lofty marks, patience is important, and often it makes more sense to be Neutral and stand aside and wait for confirmation of the patterns.
Lay back with dry powder, and lets the plays come in, they will do.
Remember, there will always be a trade.
The sentiment indicators are flashing Red again like they did before the January selloff, the Bulls are those levels again now, just as they were at the highs of Ys 2007 and 2005.
Have a great week.
All the best,
Latest posts by Paul Ebeling (see all)
- Gold And Silver Rose, But The 200-Day MA Is Key Resistance In Here - April 25, 2014
- Obama Dined At Jiro, Affirmed Security, Left With No Trade Deal - April 25, 2014
- How Long Can Amazon (NASDAQ:AMZN) Operate With Zero Margins? - April 25, 2014
- $LO, US Government Lays Down Laws For Electronic Cigarettes - April 25, 2014
- US Supreme Court Justice Stevens (Ret.): Time to Legalize Marijuana - April 25, 2014
How Long Can Amazon (NASDAQ:AMZN) Operate With Zero Margins? Amazon.com, ... read more
Conditions In Place For China's RMB Yuan's 2-Way Fluctuation Conditions ... read more
Gold And Silver Rose, But The 200-Day MA Is Key ... read more
Gisele Bunchen And Tom Brady's LA Home w/Organic Garden & ... read more