Just check out these charts:
Everything is screaming overbought. I think we are in a new uptrend and perhaps we will get a pullback on Greece news. Lumber, Copper, are in great shape. Here we sit. The COMPQ has blown through resistance. The SPX and Dow are testing the resistance areas this week. MSFT, WMT, INTC are moving into fresh air spaces on their charts.
$TSX - Flirting with the 200 DMA
$DJW - Flirting with the 200 DMA. This is a global stock index. So the trend is wider than the USA.
$AORD - Flirting with the 200 DMA
$CAC - Flirting with the 200 DMA
$NIKK - Approaching the 200 DMA
$KOSPI - Flirting with the 200 DMA
$CNXN - Flirting with the 200 DMA
That is a few indexes! OK. Lets see where this week takes us. I expect a pullback here, especially after Friday's rally.
It is the depth of the pullback that is unknown. Based on my chart work, we are now in a long term up rally. I think on the pullback, it looks like the commodities will join the party. That's a guess, but we'll have to wait and see.
Great meeting coming up on Tuesday Feb 7 in Calgary. Myron Nowolselski is presenting some great work on bonds. It can be a very observant door into equities. If you can make it....book it at www.csta.org
As well two special events being held in Calgary. One with Tom McClellan on March 13,2012. The other with Ed Carlson on March 17th, 2012. Must be booked at www.csta.org
Can't line up talent like these 3 every month! Don't miss it if you can be in Calgary.
Greg Schnell, CMT