One of the reliable ways to see if the market rally has legs is to look for the strength and breadth of the leading groups.
I find it amusing that nearly almost all market direction predictors look at only the big board index. There have basically no analysis of the underlying sectors.
The stark contrast between March 2008 rally and the current rally lies in the groups which lead the market higher. In march 2008, tons of oil and commodities breakout into new highs, which makes it a remarkable tradable bear market rally. What do we have now? We have nothing except a few medical stocks, and many of them are thinly traded. It is basically a waste land.
Although I continue to believe this rally should last longer than couple of days, but the quality of the rally should warn you to exercise the maximum caution when chasing longs
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