Minyan Mailbag - Pepe Depew
I'm rooting for the Cats against the Heels tomorrow too, Pepe!
Note: Our goal in Minyanville is to remove intimidation from the financial markets and encourage an interactive dialogue among the Minyanship. We share this next discussion with that very intent.
Some Minyan vibes from the very talented Kevin "Pepe" Depew:
Professor Dingmann's comments yesterday on the Oil Service stocks were spot on, in my opinion. This sector remains bullish, and the charts in the group are among the best I see in terms of risk/reward of any in my universe.
I'm watching very closely the BKX (who isn't!) as it might be the final feather in Boo's beat up hat, a feather which may soon be replaced by a brick, if you know what I mean. The fact that BKX has failed to print 104, which is needed on a PnF basis to confirm the SPX's recent high, is a decidedly negative divergence in my book. A similar phenomenon is occurring with respect to the Nasdaq and Biotech. The BTK relative weakness should raise some eyebrows among those, like myself, who are less sanguine about the market's longer-term prospects.
On a positive note, however, the NYSE Bullish Percent continues to move higher on a daily basis, and this is nothing but bullish...for now. Today it is up as well, and if this move higher holds it will be the 29th consecutive daily rise for this indicator, the longest period of consecutive daily rises since a string of 26 between April/May 2003.
As has been pointed out by you and others, excessive positive sentiment is much slower and more difficult to dampen than excessive bearish sentiment.
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