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The Morning Cup of Jo


"Pump up the Volume, Pump up the Volume, Dance, Dance!"


Hoofy and his friends unquestionably came out to play yesterday, that's for sure. The NYSE's volume was the 2nd highest is almost 2-months and the majors are sitting right below their ST downward trend lines just itchin' to cut loose. But, as Sammy the sidewinder would say, "Don't shoot 'till ya see the whites of their eyes." The big questions on all the critters minds this morning is whether or not there's enough mustard left in the jar to bust through to the upside today. In my humble opinion, there had better be some sort of catalyst, whether it be earnings or otherwise, to 'pump up the volume' if they're gonna do it. As a techie, you always want to see a trendline break with extremely high volume.

Many of the U.S. secondary markets and world indices are looking in much better shape after yesterday's run up, although there is still plenty of technical construction left to do. The curious part is most of the technical formations; I would say at least 50% if I had to guess, are inverted dandruff patterns. Interesting.

Nonetheless, there was one index in particular that made its move yesterday - a good sign for the Dow Theorists - Transportation. It busted through the neckline of a Head & Shoulder bottom and closed at the high of the day. Very nice.

The dollar crossed over its 200 DMA for the first time since August of last year, with the 4th highest volume in almost 2-years, but couldn't hold (distribution). This could spell good news for commodities in the short run if the dollar retraces back to ST support (50 DMA - 88.50). And, as all the metal investors already know, any help down here would be much appreciated.

All in all, yesterday was the kind of action you wanna see prior to breakout, but it ain't over 'till the fat lady sings. Here's some numbers you should watch today...

Dow 10,570
SPX 1,150
Nasdaq 2,079
NDX 1508
BTK 555 (Biotech)
IIX 160 (Internet)
RLX 404 (Retail)
Gold 390 (downside break)

I sincerely apologize about not having any charts this morning - I was on with the chief programmer for my chart service for three hours testing last night and they couldn't get the daily information posted. I guess their gerbil quit running. I'll post a few charts throughout the day, assuming they feed the little critter, on some of the Buzz and Banter stocks mentioned.

Until next time...


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No positions in stocks mentioned.

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