Sunday, August 3, 2008

Market rallying?

IBD flagged a (potential) rally on Tues 29th July,

Abt 4 of 5 follow through days end up as a bull market, or at least a tradeable rally (like the March to May one). Thurs and Fridays mkt action consisted of the market absorbing bad news, as it fell on lower volume. Have to watch how it responds to the rest of US earnings season. Commodity prices are another big risk. We will not know whether it is a false signal, a tradeable rally, or a new bull market till after it is over. (Examples of follow through days in the 00-02 bear market).

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