Stocks Find an Extra Gear
Posted on February 21, 2008
Filed Under Market Speculator |
6:15am EST Stocks move higher on higher trade, ignoring $100 a barrel and the FOMC forecasted GDP growth.
Wednesday trade was definitely the first sign of strong bullish action in quite some time. Stock gapped lower on a higher increase in the CPI. By later in the day, stocks poised to move higher. Before the FOMC January meeting minutes were released stocks broke into positive ground. Volume was higher across the board showing the first sign of accumulation in quite some time. The market will need to string a few of these together and we’ll need to find nice charts to get a new bull market going.
My take on yesterday’s rally was merely a bear market rally. I can only imagine the talking heads on CNBC are jumping at the chance to say “buy!” New Lows outpaced New Highs again! NL 171 to 77. During new bull markets New Highs would be beating New Lows without a problem.
There isn’t much news flow from the economic front, I am not going to jump on the market’s bandwagon just yet. Its best to find stocks that are growing earnings and sales at a tremendous clip and watch their price and volume action set up.
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