wednesday morning

SHORT TERM: stocks gap up at the open on good GDP news.
Overnight the Asian markets were all higher, and Europe came in higher as well. At 8:30 the government released the revised Q3 GDP report, raising growth from 1.6% to 2.2%, and revised the Q2 data higher to 2.6%. With these revisions, the GDP has grown at a normal 3.0% over the last 12 months. The economy apparently has not slowed down as much as everyone had thought. At the open the stock indices gapped up, and have thus far, kept right on going. At 10:00, new home sales came in lower than expected, but median prices rose. The real estate industry seems to be bottoming out, after the speculative frenzy earlier this decade.
Technically, the SPX has now rebounded into what should be resistance: the previous 4th wave, see chart below. Short term the market is now overbought on the 15min/60min charts. Lets see how this rally works itself out. Gold is down a bit this morning, Crude continues to work its way higher, and Bonds are flat. Best to your trading!
MEDIUM TERM: neutral … major indices appear to have completed uptrends
LONG TERM: bullish.
 

About tony caldaro

Investor
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4 Responses to wednesday morning

  1. tony says:

    Hi Guys!
     
    Frank … yes I do see it, but the gold stocks looked poised to move higher. And, I\’m only counting this move up as i of 5.
     
    BMZ … two days would work, if it was more like a 40% retracement. Remember the summer of 1986?  

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  2. BMZ says:

    Hey Tony-
     
    Any EW scenario that allows for the 2 day drop to SPX 1377 to be counted as the extent of the correction?  That drop represents 30 pts. or about 15% of the rise from 1219.  I know it doesn\’t seem like a conventional retracement. 
     
    BMZ
     

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  3. Frank says:

    Hello Tony,
     
    Do you see negative divergence on MACD on the daily chart so far on GLD?
     
    Frank

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  4. Frank says:

    Hello Tony,
     
    Do you see negative divergence on MACD on the daily chart so far on GLD?
     
    Frank

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