Wednesday, February 27, 2008

02.27.08 - Rate Cut Rescue

This market continues to impress -- not that the Bernanke easy money commentary and higher loan limits didn't hurt. We did get several short signals around mid-day yesterday. Because they "arrived" in a flat market, I elected to leg-in, so really just hedged at this point. Note that Tick and AD line are effectively flat. Semi's are again leading the pack with Transports actually down on the day.

Edit: Notice also that the SPY is now up against its 50-day MA, which could represent resistance for the technically oriented. As a second note, I see the most recent Intermarket Sentiment model signal closed yesterday for a 2.1% gain over a five-day period.

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