August 2, 2010

Markets gapped open at wide resistance pivot and just kept going up on low/avg volume. Headline news explanation was mostly nonsense. Half the move up was because the dollar dropped. But technically, the indexes are breaking through resistance and if they do there will likely be a whoosh up as some shorts cover.

Short-term: 1 green, 3 yellow – tending yellow
Intermediate-term: 3 green, 1 yellow – tending green
Stock targets: 39% swimming, 36% neutral, 25% sinking

And as before a whole bunch of individual stocks are all moving thru technical targets simultaneously. So much for the antiquated investment idea called “sector rotation”. All sector ETF’s are either neutral or swimming and the only things still “sinking” are gold, shorts, and a few companies that reported bad results. Why it reminds me of an old song.

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