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Market Strength Compelling
Posted on 09/25/2006 16:38:42 | Link | Post Comment
After capping off another strong week and closing near its highs Friday, the market appears exceptionally poised for further advances this week. Friday we singled out United Airlines UALAQ as the star among the bankrupt airline group and it did not disappoint, rising some 13% on the day and could be heralding the beginning of United Airlines re-emergence from bankruptcy.
Friday also saw a strong breakout to new multi-year highs in the Nasdaq 100 Index NDX and this week could well see the S&P 400 MidCap follow suit to new all time record highs. The awesome developing momentum that has continued to propel the Dow Jones Transportation Index to new all time record highs did not let up last week, in fact the index closed right at its highest level ever again Friday at 4073.25 in a stunning display of strength. We expect some consolidation in this index this week and possibly in the market as a whole as it consolidates near the high end of recent ranges and perhaps gathers momentum for the next big advance.
Meanwhile Copper surged to new all time record highs all week and Platinum followed setting 25 year highs and is now less than $60 from new all time highs. Palladium also surged sharply higher and the net effect of all this has been a stealth come from behind strengthening advance in Silver and Gold that could potentially lead to a breakout to new multi-year highs in these metals too, although they are still the laggards of the group for now.
The US Dollar also continued its advance, but may be approaching a critical level soon that will likely determine whether it can advance significantly higher or whether a turning point might be at hand. The Japanese Yen is particularly weak and thus supports the case for a stronger Dollar as do the uncertainties that are currently emanating from the European Community.
The Energy markets are balance between increasingly higher inventories and the threat of a colder than expected winter ahead. Natural Gas in particular appears to be extremely sensitive to the slightest hint of cold weather approaching and supports the rest.
Trade Well,
From the Desk of Savant
Friday also saw a strong breakout to new multi-year highs in the Nasdaq 100 Index NDX and this week could well see the S&P 400 MidCap follow suit to new all time record highs. The awesome developing momentum that has continued to propel the Dow Jones Transportation Index to new all time record highs did not let up last week, in fact the index closed right at its highest level ever again Friday at 4073.25 in a stunning display of strength. We expect some consolidation in this index this week and possibly in the market as a whole as it consolidates near the high end of recent ranges and perhaps gathers momentum for the next big advance.
Meanwhile Copper surged to new all time record highs all week and Platinum followed setting 25 year highs and is now less than $60 from new all time highs. Palladium also surged sharply higher and the net effect of all this has been a stealth come from behind strengthening advance in Silver and Gold that could potentially lead to a breakout to new multi-year highs in these metals too, although they are still the laggards of the group for now.
The US Dollar also continued its advance, but may be approaching a critical level soon that will likely determine whether it can advance significantly higher or whether a turning point might be at hand. The Japanese Yen is particularly weak and thus supports the case for a stronger Dollar as do the uncertainties that are currently emanating from the European Community.
The Energy markets are balance between increasingly higher inventories and the threat of a colder than expected winter ahead. Natural Gas in particular appears to be extremely sensitive to the slightest hint of cold weather approaching and supports the rest.
Trade Well,
From the Desk of Savant
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Examples
Morpheus Trading - Mon Jul 21, 2008 08:33AM
NOTE: Please click on the charts below to enlarge them if [read more]
NOTE: Please click on the charts below to enlarge them if [read more]
Morpheus Trading - Mon Jul 21, 2008 08:31AM
NOTE: Please click on the charts below to enlarge them i [read more]
NOTE: Please click on the charts below to enlarge them i [read more]
Millionaire Now! by Larry Nusbaum - Fri Jul 18, 2008 08:23AM
U.S. stock futures rebound on Citigroup results"S&a [read more]
U.S. stock futures rebound on Citigroup results"S&a [read more]
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