Wednesday, January 24, 2007

It is a Most Elusive Fish...

The markets were very strong today. At least I am not putting my foot in my mouth. I've made it very clear lately that until there's a clear "rupture", we're still in bull-land. Earnings season isn't doing a hell of a lot so far for our cause. It reminds me of a favorite movie clip of mine......



The Dow Jones 30, shown below, hit another lifetime high today. I wouldn't be shocked if we pushed all the way toward 13,000 in the coming weeks. Earnings from EBAY this evening have the stock up over 10%.


The S&P 500, while not at a lifetime high (its high in early 2000 stands unbeaten) is nonetheless at the very highest point of a massive ascending wedge. Looking at the charts tonight, it's obvious that the strength is widespread and devastating to the bears. (Goldman Sachs just being one of countless examples).


The only bearish holdout is the beleaguered Dow Transports. Of course, I'm sure the bulls will say Dow Theory is sad and outmoded and should be ignored.


If there are any living bears still out there, I like the looks of Adobe (ADBE).


...as well as Black and Decker (BDK).


For a bullish play, CRR looks like it is beginning to turn northward after a long slide.


Ryland (RYL) has recovered back to its neckline, although I use that term somewhat loosely since this isn't much of a head and shoulders pattern. All the same, with this much recovery under its belt, it makes going short the stock much less risky.


Much the same logic holds true for Sierra Health (SIE).


Lastly, I will mention one short suggested here, Textron (TXT), seems to be getting slammed in after hours trading. Nice to have one bright spot to anticipate for the morning!

8 comments:

Rob said...

I had my hopes set on QQQQ dive bombing because of Apples (and tech in general) outlook...but NO!!! the f'in thing curled up on my like the wicked witches legs when the house fell on her.

Rob said...

oh...and roly poly fishheads http://www.youtube.com/watch?v=LzpN9ce_qF0

PB said...

I think bearz are an endangered species, looks like this bear will have to work 'till, oh I don;t know, 'till I'm a 105 years old!!!

Damn bulls are eating me alive!

Not that it matters much these days, but the markets are waaay over-valued by almost any reasonable and sane yardstick, be it inflation adjusted or not. GS was up over half of what it earns in a single year! Who is finding value in these markets?

How long has it been since a 10% correction?

evenflo269 said...

Tim, have you done or do you currently do a loads of drugs? That was, by far, the stupidest thing I have ever seen in my life - and I've seen a 65 year old Lou Reed attempting to rock out while reciting 'The Raven'. Just a question. And by the way, I would not judge you if your answer is yes as that would make me a hypocrite.

stockshaker said...

Tim, talking about Dow 13000? The last bear has thrown in the towel...

pb, the correction starts tomorrow. well, once ford reports its ridiculously stupid management of a company, that somehow overshadows ebay...

Lauriston said...

i think it will take something negative from the "new" economy gang like GOOG to change market direction. Not sure anyone pays much attention to the likes of F and GM, otherwise this market would not be where we are. BTW I think GOOG is about 5 times F and GM combined market cap!!! LOL

Leisa said...

Tim, what movie was that clip from?

I like listening to Gary Kaultbaum. He's said in his last couple of shows that it used to be the semicondcutors that were the bellweather (or canary). They sure are acting like a bunch of canaries, but I think Lauriston is right in line with Gary's thinking. That is it is the new economy (and he also mentioned Google specifically last night) stocks that are the new bellweathers.

Brian said...

monty python's meaning of life