StockTock.com discusses the US Dollar breakout and today’s rally in the S&P to the 50-day moving average. The dollar rally must be respected and its implications should not be taken lightly. Regarding the rally in equities, the trend is your friend so don’t fight the rally. We highlight the dollar index, SPY, NASDAQ, gold GLD, oil USO, natural gas UNG, financials XLF, regional banks KRE, retailers RTH, and TSO. Have a great weekend!

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4:20pm
S&P pierced its 50 moving average… Dow up 300 points… What a relevant post I made yesterday about 300 point rallies in the Dow and Bear Markets. Don’t try to derive too much from that article. I just thought it was interesting that most  +300 point days occur in bear markets. But this is not [...]

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StockTock.com discusses pretty much everything. We look at 23 different charts to get a broad overview of what is going on in the global economy and its effect on the US stock market. We touch on UUP, EEM, FXI, EWJ, DBC, USO, OIH, KOL, SLX, GLD, IEF, XLV, NASDAQ, KRE, VIX, SPY, XLF, GS, C, WB, POT, RIMM, and QQQQ. Don’t fight the trend. It’s a bear market rally until the charts tell us its not.

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During my daily blog browsing, I came across this fascinating article from Bespoke Investment Group about 300 point Dow gains and Bear Markets. It turns out, 300 point gains are most common during bear markets and scarce during bull markets. In fact, there were only two +300 point days during the entire bull market from [...]

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3:49pm
Remember, the trend in this market is higher. Don’t be scared of pullbacks. Embrace them. We bought some SSO down here. We could consolidate more tomorrow so don’t put a full position on just yet. A fakeout move under the ascending trendline is also possible. Stay tuned for today’s video.

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StockTock.com discusses today’s light volume move to the 1291 resistance level. The rally continues to squeeze higher and likely has more upside. We identify potential resistance levels for the S&P. Bearish action in several financial stocks gives us pause here, and leads us to question the sustainability of this rally. We look at FRE, FNM, UBS, KEY, LEH, MER, and AXP. We also look at the US dollar and oil. The long oil refiners trade finally began to work today.

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4:00pm
This market sure is interesting. The S&P rallied up to the 1291 level and then consolidated just under just under it. Financials did not participate in the rally today, perhaps taking a rest after yesterday’s push. FNM and FRE were both down big, but the overall market did not pay much attention. AIG about to [...]

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Tomorrow and the Next
Tuesday, the S&P staged an impressive rally, moving higher by 36 points to 1285. The next upside target for the S&P is the descending 50 moving average, which currently sits around 1304. In order to reach that level, the index will need to push through the 1291 double-top. Financials may continue to [...]

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StockTock.com discusses the Fed Day rally that ironically had nothing to do with the Fed at all. The S&P pushed off its 20 moving average on rather unimpressive volume. The rally probably has some more upside, but there are several important charts to watch. The dollar is sitting under resistance. Gold is sitting on support. The XLF is sitting on the 22.50 resistance level. Tech looks unmotivated. Regional banks probably have more upside. Oil is oversold but continues to take out support levels. LEH may be forming an inverse head and shoulders pattern. FRE looks ugly ahead of earnings. Watch for oil inventories tomorrow at 10:35am.

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4:10pm
Big rally led by retailers, financials, and technology. Stay tuned for today’s video.

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