Wednesday, February 17, 2010

LOOK HARD, DO YOU SEE IT?

"HUGE JUMP IN HOUSING STARTS AND PERMITS"
Looks like I need to go to the eye doctor again.........they will trumpet any little change, tell you of a SOUND economic recovery, and if they say it often enough, they are hopeful the masses will believe it.
Never mind the CONTINUED deterioration in bank lending and outstanding credit.....the gov proposes a $10B?? jobs stimulus...ARE YOU SURE? what impact in a $14 Trillion economy?
Now we know environment is accommodative, so I can't say how long they can keep it up to extent it can influence stock prices. WHAT I DO KNOW is that when this period is over, stocks will again ake their PAINFUL journey to their ultimate BEAR MARKET LOWS.
On the bullish side of ledger, yesterday was a 90% upside volume day, what was it missing? VOLUME of course, but the measures I watch were lit up.
ALL of this action taking place RIGHT UNDERNEATH of the 50 EMA, now it is declining and tends to in this position to create RESISTANCE, so....any jump out of the gate could be met with selling as the day progresses.
Should the 50 EMA be recaptured on the close, the bulls KNOW this, could be sign of the POTENTIAL for previous highs to be tested. The $ is stable to rebounding this AM, holding around the 80.00 index value.
Duratek

No comments: