It’s so Obvious…

CNBC commentators this morning have so eloquently stated the obvious this morning. “there is nothing that we see that indicates any reason to buy any stock”. What more do we need to feel the total bearishness that has over shadowed the market during this early stage bull market over the past 16 month.

I am encouraged that the New Economy is raising its hand, as I have been saying, money is going to move from consumer areas to core growth stocks, ie the Russell kind of stocks in this new era.

Here is the important RUT/NDQ relationship chart using daily data. It went into oversold mode on September 8 and made a bottom this week.

And we cannot forget the bond picture.

As stated yesterday, we are looking at volume when prices breakout of the Interest Rate Pocket, high volume will tend to signal follow-through, while low volume will tend to signal a trap. Today we have a low volume breakout of the 84.06 low of the pocket, down to 83.85, but volume is on low side.

I want to point out that the forecast bottom area for TLT Bond ETF made back in March of 2021 was based on a technical time and volatility calculation not some evolvement of fundamentals. So, it should be expected that the fundamentals would look really bad at the technical bottom.

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Update after the close…

TLT, while closing lower today, bounced back up into the pocket. This I take as significant. TLT closed at 84.52. And, RUT/NDQ closed at 0.1160, another good factor for this important day.