Tuesday, December 16, 2008
Market Rallying as Projected, Still Has Further to go; Dec. 16, 2008
The market is playing out as expected with the strong push higher today of 5% in most of the major indices. The S&P is entering resistance areas and the general target of 950 as I've stated many times. Big moves like today call for profit taking or establishment of new positions so I added a small amount to my short S&P position.
The Fed cut rates to almost zero, showing the desparation of the Government to help this doomed economy. So they really have no more bullets left in their gun as every lending facility they've set up has failed, and their interest rate slashing campaign has done nothing to stop one of the sharpest stock market declines in history. Looking at the above S&P 15min chart we can see the strong rally that transpired today which was accompanied by very strong breadth spikes as seen from the indicators at the bottom of the chart. The last time I looked, 93% of all volume on the NYSE was to the upside. This was obviously a broad market rally and due to the strength and structure of the market, it should chug to higher levels in the near future. It's quite possible the rest of the week will be one big rally. But this is all guessing, the goal is for the S&P to get to the 950 area and I can then start aggressively getting short in preparation for the next declining phase.