Lordy this market likes to tease us. Just when we have all of our momentum indicators lining up for a long side run, we get a nice opening and it looks like we are ready to romp, then the air comes out of the balloon. What is a trader to do other than don't ask why and take a look at which way the tradewinds are blowing. And guess what, our momentum indicators continued to strengthen to the long side. Particularly our fast momentum indicator, after a two day respite turned upwards again. Our slow or long term indicator is just a fraction away from a neutral or calm water reading. If you are a long trader, you still have to like the way things are shaping up.
We are out of the January hurricane and my indicators don't suggest we will be returning to that storm in the next few days. Not everyone agrees with that. This article from Mark Hulbert on MarketWatch suggests otherwise. I am not the sharpest tack in the box, but I can say this, when we hit the January lows all of my momentum indicators were is a sharp downslope leading up to that low. As you can see they are all now moving upslope. Things can change, but I just don't see it.
Once again, check out our Top 25 lists for long and short ideas, although I don't recommend any short side plays at this time.
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