Monday, December 3, 2007

Rising 5-Day MA Providing Support

Still catching up from last week's trip (back late last night) and need to get November's "Rewind" out, not to mention my fund reports.

The rising 5-Day Moving Average of the SPY appears to providing support. Although the cumulative TICK is positive, it seems weak and there is very little trend strength either way. Nonetheless, we are seeing a pattern of higher lows and highs here, which is constructive. We will see.

We are just under the 50% retracement on the first trading day of the month. Getting more short set-ups than longs at this point... Oil has got to be helping to sustain the gains here. Also, have you looked at the ten-year note lately? It's well under 4%! Although small-caps have been taking it on the chin, this has got to help at some point, although I suppose LIBOR is more relevant in this regard. As a last heads up, I believe the Sentiment trade from (too) early last month finally closed out Friday.

Apologies for the random walk, more when I have caught up.

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