Bullish expectations jumped on Monday as many market participants were happy to hear the rumor regarding ECB opening up to mimicking the US FOMC and running a QE program. Buyers jumped out from the gate, but they weren’t out in full force. Monday’s typically are light volume affairs and today wasn’t any different. Volume ran lower for the entire session and certainly didn’t follow price in today’s trading. The lone economic piece of data was a disappointment with the Monthly Budget Statement coming in lower than expected. Beaten up as of late, the Russell 2000 led the market higher and it was followed by the NASDAQ as the Dow and S&P 500 close at all-time highs. We continue to find buy signals in value names and will continue to follow the price action.
An interesting thing to watch will be whether or not Investor’s Business Daily will move into “Market in an uptrend.” They are stuck because of their bias towards growth names and for the past few months they have been pounded. Given the S&P 500 is at all-time highs it will be hard for the paper not to move their market call to “Market in an Uptrend.” They did so back in February and seemingly at the market top and it will be interesting to see if this same situation occurs once again. We aren’t going to trade on this, but it will be fun to watch.
Looking across the globe the Shanghai had a decent evening, but it was India’s SENSEX stealing the show. The past few days have been quite tremendous for the index. Check out the chart:
There are other interesting tidbits from CNBC and that is the number of bullish articles they are producing and especially today. Check out these two headlines:
Market will ‘explode to the upside’: Pro
Jim Paulsen: ‘We’re setting up for another run’
It is nice to know this “pro” and Jim Pausen are so confident in the market direction. It is much like how Bernanke is 100% we will not see hyperinflation. Didn’t their mothers ever teach them: “never-say-never?” We are positioned to take advantage to the upside with a lot of energy names so if we are to explode we are long those who are leading. We have our sell discipline if we do not. Unfortunately, we do not see a sell discipline in these articles other than just buy this market.
A decent way to start the week despite volume was a bit light on the day. Keep plugging along and don’t forget to take advantage of our “Sell-In-May” sale. Get 40% off the Platinum price! A great deal to join a community of solid traders! We’ll see you tomorrow answering the question of whether we get Turnaround Tuesday or Tumbling Tuesday!
