Wednesday 16 February 2011
Taking titles from the O'Jays and Sonny and Cher, they describe
the market activity in the S & P. Until supply selling enters the
market, nothing is stopping it, and taking guesses as to where or
when is a losing proposition. The number of profitable shorts in
the market has to be less than a handful, and that has been
changing practically every day. So the market continues to climb
its stairway to heaven.
We are not sure that it matters, for the Fed has bottomless
pockets, but the upward momentum, as seen in price swing highs
shown by the horizontal lines, has been getting shorter. One
thing that can be said about the small trading ranges is that when
the market does turn, it would not take a lot to erase gains, but
until that happens, the beat goes on.