so i dont get accused of formally converting to bulls
let me quote something here from one of the sharpest daytraders I know (well on the other side of the pond
):
quote
Keep in mind that Friday completes month number 10 of the bull move without an important correction.
Wall Street had big trouble with the Friday Jobs report. The Street searched for spin. Some claimed "aberration," and predicted that subsequent revisions will prove more acceptable. Some blamed productivity, that U.S. business has become lean-and-mean, and that rising sales are getting down to the bottom-line a lot quicker. So, why rock the boat with a hiring expansion?
In the early part of the day, the Street seemed to buy the spin, and stocks held well. But, as we headed for home, the selling
intensified, as the Blue Chip Index fell 133 points, NASDAQ lost 13, and Big Board winners balanced losers.
As stocks fell, bonds rose dramatically on the premise that a slack
labor market is not the stuff of monetary tightening. The 10-year
note rallied over a point, bringing the yield down 14 basis points to
4.12. Meanwhile, the dollar tumbled to a record low against the euro.
Also troubling was the price of oil pushing through $34 a barrel.
If you are a trader looking for a correction, maybe you should look
at the Mcclellan oscillator. This indicator tends to correct before
the indexes do. This week the Osc. made a Head & Shoulder pattern and moved down most of the week. Nyse mcclellan is +9.90 , as long as it tests and stays above the 0 line , the up move will stay in tact. If we decline too far below the 0 line we could see a large correction. So keep an eye on that ...
end of quote
