Strong day yesterday. Noticing a bunch of pundits not believing the move. We have news for them…price is smarter than them.
As we told you, we thought a decent low was being put in for the REST OF THE WORLD. It has been the rest of the world that have been holding back markets. We never know how long it lasts or how far it goes but breakouts of indices are usually meaningful.
As we do our scans, we notice the weakest of DOW names have turned the corner. Names like even IBM seems to have put in lows. When the weakest put in lows, that is another good sign. Also, notice BA on the verge of a large base breakout. That had been the leading DOW name before the correction started.
We still believe growth may be losing its relative strength. This is not end of the world news. It [probably just means rest time. Growth has blown away value for a good while. Also, commodities are so under-owned and under-loved…most in a long time…so we think that is in play. Just realize it is mostly things off the lows and suspect retests or at least partial retests can occur.