It appears we may have an honest to goodness sustainable uptrend in place here… just in time for summer. While that is usually not “good” news, perhaps this time will be different…

OR, maybe we are seeing the beginnings of another “stealth” rally like the one that began without much fanfare in the summer of 2006 and just kept going UP until those OCT 2007 highs, just before the Big Bear Rollover…

For now, we like this steady action. The NAZ is leading the way strongly, having pierced its 200-Day MA with a nice companion, bull-crosses from the 20 & 40-Day MA’s and within a few days we should also see the 50-Day crossover the 200-Day MA as well.  The NAZ also broke out above its 50-Week MA, opening above it yesterday. This would be a very good sign if the NAZ can keep up this breakout strength through this week.

The S&P is also in good shape and if the NAZ stays strong, the S&P may come along for the ride.  Only the DOW is lagging as it is struggling to breakout above its 200-Day MA.  This could be a key battle for the continuation of this nice, steady rally that has been grinding upward for about 13 weeks now.

If the DOW does manage to BO above its 200-Day MA we will turn to a more aggressive approach on all of our New Entries and Add-Ons, Long Term and Short Term.  Our current position technicals, and most of our Watchlist stocks, are looking very good right now for either.

We may have a nice steady summer rally… wouldn’t that be nice…  Have your dry powder ready everyone, this may be a very fun summer trading season…

Coach BD 

06/03/2009 at 8:11 am
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