MOMENTUM

GREAT SITE FOR THAT AND POTENTIAL STOCK CANDIDATES BASED ON THEIR PERFORMANCE

I am going to add some LONGS against my hedges.

Dow was laggard and small and mids were outperformers, underlying strength was masked as 2-1 advancers otherwise.

I can say my most trusted sources of stock market data have been pointing to a "melting away" of desire to SELL and certain measures of buying have been riding to new rally highs.....but because of the intensity of the selling that led to lows in March of 2009, dominant position belongs to selling....but in falling pattern....none of this unuaul in a cyclical bULL from Bear mkt lows....what is unusual was it took a year to overcome data highs that existed since the first month of the advance.

SPX dividend yield STILL SITS at what would be considered a BULL MKT TOP of a scant 2% YIELD.

Understand this, as we await unemplyment data this am, as things do get "less worse" around us, and employers are getting more reluctant to fire and less reluctant to hire.....it wont be enough to put the MILLIONS back to work, because between technology advances which make some workers obsolete, the other jobs have been shipped away.....do we focus more on little companies that can grow and multi nationals? or ones exposed or in CHina/ASia?....will China continue to grow at 8% and its middle class who would consume?

Have the banking woes been put behind us? or just swept under the rug? YIELD CURVE favors banking profits but NOT FROM LENDING....as bank credit a MAIN DRIVER to any economy continues to contract.

ABC COnsumer comfort poll languishes at record lows. RECORD GOV intervention and FED buying 80% of all mortgages not enough to propel housing....but we are near a bottom, but the bottom sucks....is the problems with CRE just hype from doom and gloomers?....of which are quickly evaporating as more and more become bulls.

VIX SUB 18 is not indicating much fear, and VERY LOW PUT CALL ratios indicate little protective positioning going on from traders fearing a back slide.

My charts I have been posting show we are at very important Resistance at many levels, and even if my bearish readers do not agree, you see less comments from them lately......the stock market is influenced by many different factors that are NOT connected to what the boots on the street see and FEEL.

TO ME.....it FEELS like being LONG is a NO LOSE DONT SWEAT IT DEAL......and many momo indicators bear the strength of move out.......anytime I see such one sidedness I watch my back......for the blind side.

a 70% MOVE while over 1 MILLION have lost jobs during......that may be one for record books and so has been FED response....it usually reaps stick advances.....and each time such dramatic action has been taken......well DO NOT FORGET 2002 and 2007 BEAR.....policies that run amuck and don't create a stable sustainable economic advance.....tend to END VERY BADLY.....as I am worried this one will too.

Maybe not until SPX 1200-1250......it needs to be clear to small business what gov policies are going to be and to what cost to them, before they begin to regain any confidence and hire like we need them to be.

Holding back hiring, building cash, holding off on investments.....could LEAD to an investment BOOM.....IMHO first.....the WEAK HANDS from March 2009 lows will be shook off before that ride ever takes place.

Duratek