Tuesday, June 15, 2010

Very bullish action

I didn't think the market would go more than a point or two above yesterday's high at 1101.75. Instead it has now traded as high at 1107.75. This is the first day in two weeks that the ES has pushed steadily higher all day, and it is occurring as the market is breaking out above the 1103 high of a three week trading range. Moreover, it looks like we shall close today entirely above last week's range, a very bullish development also.

This all is evidence of a market that is gathering strength and I think it is a prelude to much higher prices. Meantime I think the next break will be modest, maybe 10 points or so. I don't expect any correction of more than 20 points until the ES moves into the 1120-40 range.

8 comments:

sandy allred said...

This appears to be a case of irrational exuberance and should lead to a steady selloff next week. Will July be an up month?

George said...

Agree. It looks like everyone that wants to be short is already short - that's a problem and is the cause of prices steadily creeping higher.

Naveedah said...

Thank you sir,for doing so much to us today!
I shorted 1094,95,96...covered 1099 and double bot there and sold 1108.
Option expiry week or whatever ,in this turmoil market you play jesus to me.
When horrified,come and see blog and get knowledge to act wise.
Live long and stay safe,sir!

nwaldman said...

George: Do you agree with this assessment:
A possible brief sell-off next week followed by a steady climb through July, until the masses cry "bull!", at which point it will be bear season again.

nwaldman said...

Oops that should have been addressed to Carl (I follow George Rahal's blog, too, and I just made an error--forgive me, Carl, been a long day!)

ukxgerard said...

Excellent work!!

Gerard

E said...

I continue to learn from your years of experience and keen insights. Your results speak for themselves.

Thanks for sharing your "box" system... quite valuable and simple, up or down.

The dancer is smiling.

Naveedah said...

Strong rally cuts through resistance including 1106June 3,14 highs and 1109 200 days moving average(day support).short term tone stays positive with continued close above 1041--1106 range,setting up potential move towards 1125--1150 summer target.short term bears retake the agenda below 1077/1072
short term resistence is 1119/1123/1125 then followed by another resistence cluster at 1149--1152.Day support is 1109/1106.beyond that short term support is 1089/1088 and then 1079/1077/1072.

When every one stopped me to trade in futures, you were my guiding star.If I learnt alot from you,I'm thankful too from my heart.
Live long and real great joyful life with your loved ones!