Thursday’s Action Bodes Well
December 2nd, 2005 by BWV
Yesterday produced the hottest & heaviest upside action in a long time.
The market began the day with a “professional gap” up.. look at the IWM chart below to see how that morning gap never even considered filling. The strong buying continued all day long.
Stocks rising 50 cents or more numbered about 1000.. about 50 were down that amount.. Very lopsided. Volume came in huge at 2 billion shares on the Nasdaq and 1.8 bil on the NYSE.. well above average.
In my opinion, this “accumulation” day is going to be pivotal going forward. I see few scenarios in which this upside move dies any time soon.
This 65′ chart of IWM shows the smallcap index pulling back a bit today, but stabilizing at last week’s highs. Following yesterday’s move to a new All Time High in that index, this is still enormously bullish action.
(For reference, the Nasdaq remains 56% from its All Time high.. obviously small caps have outperformed in a major way since 2000)
I had a feeling we were due for some upside.. because on Wednesday, with the Dow down 70, the underlying action was much stronger than that, and my positions were flat on the day. The market then produced one of my best days ever on Thursday.
Doing more buying today.
49% Long, zero Shorts
