Overnight the bill to advert default was signed by President Obama giving 90 days till another fiasco. The market cheered as the S&P 500 hit fresh all time highs closing 1733.15. The winning index on the day was the Russell 2000 closing higher by .9%. Volume jumped across the board a sign of institutional support and something we have been lacking for quite some time. While many were concerned over the debt debacle trend followers were simply focused on price and we have won out again! It is hard to ignore a market that continues to hit new highs. Sure at some point this will end and we’ll need to get out, but for now we are staying on course.
Sentiment is bullish, but not overly bullish. NAAIM survey did show a lack of bears with the most bearish bet being 5% long. The overall figure was 82% long which, while not too bullish is nearing the top range of bullish. We have seen the survey surpass 100% earlier this year. AAII survey remains bullish as bulls jumped to 46% from 41% and bears ending the week at 25%. We aren’t at extremes, but we are quite bullish. I do see many calling out all these bears. However, surveys aren’t showing too many of them left.
One item we have not covered in quite some time. I want to say over a year is Point and Figure charts. Here are the Point and Figure charts for the S&P and NASDAQ:
SPX:
NASDAQ:
Another bullish fundamental item, which surprised me this morning, was the number of optimistic producers from the Philly Fed index. Check this out:
At some point we’ll have to pay the piper in terms of all the monetary support from the Federal Reserve. Maybe we’ll get lucky and avoid any catastrophe. All we know is the trend is up and we are following it. Since the government was able to come to an agreement we have a coupon to get 40% off a Big Wave Trading subscription. Use the coupon code: YEAREND and receive 40% off.
Make this weekend a great one! Ride your winners.
