My charts are painting a bullish picture and this week’s behaviour seems to be validating that, as does my timing system. We had a consolidation day yesterday and today we opened higher with a slight sell off EOD to keep the bulls from getting to giddy over recent gains. When you throw in the fact that recent market leaders are behaving as they should:

NZ APKT CTXS VHC VGR TZOO EZCH PCLN

…it’s causing me to think I’m under-invested only holding 3 longs right nows (GTE SPRD CTCM). In reality when you look at the Dow chart below we’re stuck between the 200dma and 50dma and until we get out of this range we’re stuck in the middle. This recent run up reminds me a lot of July’s move higher when it ran up, got rejected at the 200dma and then fell back under it’s 50dma, only to run much higher than anyone thought. What’s ironic is my timing sytem when long on July 16th, after the big run up, just like this time.

We have a rising channel on the % of stocks on the Nasdaq above their 50dma, as is the Macd histogram has still put in a higher bar. There still seems to be room to run higher in this chart as well.

A few new names that made my watchlist tonight are: JASO, MO, TEVA

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