"there's more room for stocks to run tomorrow. "and run they did indeed today, to the tune of a nice 84 point advance in the Dow to close at 12,170. This puts us back into the center of the consolidation range from earlier this month with no resistance now until the 12,220 - 12,250 area.
We also remain in the upper half of the new ascending RTC that began on the 16th. And we're also back inside the longer term RTC (the rising red line) going all the way back to last June. Meanwhile notice how the indicators have all risen considerably off their oversold lows of a week ago but are not quite yet reading overbought. Soon, but not now.
In addition, all three futures are up around a third of a percent at this hour (1:20 AM EDT) and have been trending up fairly steadily since around 8:30 this evening. And thankfully there's no new catastrophes on the world stage this evening, though that can obviously change at any time. The market seems to be ignoring the continuing rise in oil prices (though I think that may be in for a decline tomorrow) and the news out of Libya tonight seemed to be more about how much money this is costing us than how angry everyone there is at the US. (A million bucks for one cruise missile? Memo to self, buy stock in whoever makes these things).
Finally, the VIX continued its decline, closing at 18 even. The VIX indicators are starting to look oversold (and more oversold than the Dow indicators look overbought), but its lower Bollinger band isn't until 15.5, a number which also represents support going back almost a year. So I'm thinking the VIX has at least one, possibly two more days to go lower, implying that we're in for at least one more day higher in the market tomorrow. This is also historically a good market day. That's all she wrote.
No trades today. I played hooky this afternoon from the market and took advantage of an early spring cold snap to get in one last afternoon of skiing.
I'm looking at gold again as a longer term play. Despite a good week this week, I think gold is going lower in the near term. I'll be waiting for a buying opportunity there. In the meantime, Ford just motored away from me today gaining over 5% while I was left standing in the dust at the side of the road. Sometimes that just happens. One of my rules is not to chase, so I didn't.
And still no explanation for that sudden mysterious 16% jump in OMEX yesterday. It only closed 4 cents lower today which makes me believe that something good must be brewing over there, since none of yesterday's buyers were willing to jump ship today. Very mysterious.