Dear Trader,
Week Ending May 29, 2009
Topics Discussed This Week:
* Rally off and running again…
* Leaders on hold
* Earnings still in the tank
* Home prices still falling but sales off the lows
* Elliott Wave SPX Perspective
* Next weekly newsletter June 14…
Stocks rallied strongly on Tuesday following the Memorial Day
holiday based on a … Dear Trader,
Week Ending May 29, 2009
Topics Discussed This Week:
* Rally off and running again…
* Leaders on hold
* Earnings still in the tank
* Home prices still falling but sales off the lows
* Elliott Wave SPX Perspective
* Next weekly newsletter June 14…
Stocks rallied strongly on Tuesday following the Memorial Day
holiday based on a strong showing in the Conference Board’s
consumer confidence indicator which is interesting – we have
found this metric to be of little trading value.
Meanwhile, investors chose to ignore the most recent
Case-Shiller home price index that showed home prices continue
falling at an accelerating rate.
But then on Wednesday, markets experienced a big reversal day as
the Dow gained nearly 2.4% in the morning only to give it all
back and be down 2% by the end of the day. According to Bespoke
Investment Group, similar reversals since 1900 have been
accompanied by drops of more than 1% over the next week and the
Dow was down an average 1.7% a month later.
So while recent market action is bullish, there are a couple of
major concerns for the health of this rally going forward.
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To read this week’s MARKET letter please go to
http://tradesystemguru.com/content/blogcategory/34/68/
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http://tradesystemguru.wordpress.com
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