Wednesday, July 30th, 2008; MPT Rating (01 Support)
The markets were filled with bullish news today as the FED extended its barrowing policy to banks; the new short-sale rule was extended in the market, jobs data in the private sector and the massive selling in Oil has everyone in a good mod, or at least turning that way – so what happens when the FED meets next month and does not raise interest rates but holds them steady? Speculation on my part of course, but used to point out the fact that we still have data on the horizon to continue to fuel this market in favor of the bulls, and if the FED does (as is expected) hold rates steady then we see another boosted quarter of fatter profit margins which translates into more positive earnings for corporations in the third quarter.
The DJIA gained 186 points today continuing to reverse or fill the pullback started after the break out of the down trend noted on the attached chart.I would look for us to see a break out of the 11,698 peak and then press the upper BB lines higher with potential to test 12,400 before this run comes into top heavy analysis…This is forward looking of course as we could consolidate at any time pre FED Policy Meeting next month, but if the FED does hold rates steady as I anticipate they will we can see an added boost to further drive stocks higher.
The NASDAQ gained 10 points for the day forming a clear consolidation signal with a Doji candlestick now clearly marked on the chart… In my opinion this rally is not over and bulls need to be buying up quality.
Today’s MPT (Market Power Trend) Rating, which tells us what “Smart Money” is doing in the market and where support/resistance is came in at (01) which tells us the support level for this market has just been raised by the bulls and we are now sitting on support and this is where you need to be a buyer of quality stocks currently oversold in this market.
As Always; Be Smart, Be Patient, & You Will Be Successful.
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