Today's market action was no April Fools joke. We are in for the real deal of a long side moving market. I am not calling it bear or bull, all I know is its heading up as a trend.
Now if anyone doubts that we don't know what we are talking about here, read yesterday's post. No one could predict the strength of the move today, but all our signs said that the last few days were just refueling for the next leg up, and today was blast off. I don't have many readers of this blog, so I urge those of you who do check in from time to time to share the love with family and friends that you have found a no nonsense blog that will give you an honest read of market action.
Overall, where do we stand? Our slow momentum indicator is still in the neutral zone but made a sharp move today which tells me are ready to sail out of the neutral winds into the positive TradeWind zone before too long. For the first time in a long time, the slow momentum indicator of just the indexes (which I don't publish right now), is actually out performing the average of the collected ETFs and indexes - a very positive sign. Of the 85 equities we track, 59 are neutral or positive - 69%.
Our sectors with the most positive TradeWinds at their back include, consumer staples (XLP), biotechs (BBH), transportation (IYT), real estate (XHB, IYR), industrials (XLI) and retail (RTH). And by tomorrow you will see the big cap techs joining this group. Now that group does not sound like investors getting ready for a recession or some other financial armagedon that you read about in the mainstream media and blogs. Don't be fooled, now is the time to be buying.
Check out our Top 25 lists and TradeWinds Black Box here.
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