At last, some encouraging news and positive surprise, it has been a long time..
Indeed, the bulls should feel good after be pushed around for so long, but question remains that: Is this the bottom? are the trend reversing?. As usual, after an up day, one has to see some follow throughs if the market indeed reverses, and those follow throughs better come quickly.
Another thing worth noting is that the volumn is light, not a very good sign. It might imply that the so-called "smart money" want some more substantance -- not just one big cap, but a handful, not the 4th quareter earning but the forcast as well -- before they commit their money
The detail of todays market is also worrisome: there are more stocks achived lows than stock achiving high by a wide margin.
| NYSE | NASDAQ | |
|---|---|---|
| Advances | 2,285 (67%) | 1,810 (58%) |
| Declines | 1,058 (31%) | 1,229 (39%) |
| Unchanged | 79 (2%) | 97 (3%) |
| Up Vol* | 2,605 (71%) | 1,635 (74%) |
| Down Vol* | 1,064 (29%) | 551 (25%) |
| Unch. Vol* | 15 (0%) | 12 (1%) |
| New Hi's | 68 | 56 |
| New Lo's | 187 | 224 |
I am not trying to be discouraging, I am just saying that caution is needed, you do not have to jump the first moment the market is up, If the market is really trending higher, there are plenty of opportunities that you can get in.
Since the rally was spured by the IBM news, you would think the tech was the shining stars today. So, a quick quiz. Out of following six stocks, who gained most, second, third ...
IBM, AAPL, INTC, MON, MOS, POT
The argriculture is even hotter than tech. Yes ! In my view, nothing has changed, I am still seeing gains in heath care, agriculture and gold..
Well, there are caution needed for agriculture, the stock like COIN has gained 40% today without any news, maybe there are too much frosty in the sectors now...
Anyways, the following several days will be interesting: we have earning news and inflation data come soon, and also, Apple will have Macworld tomorrow (?), so, the market could be news driven and pushed around a lot. So, have a good sleep and it is going to be battle ..
