Yesterday was a breakout day as institutions got a bright green light to reach for targeted stocks. Big boost possible from switch into stocks from safe havens.
Market's technical action a mirror of the economy's upbeat numbers. Key to higher prices is outflow of money parked in safe havens that will be invested in stocks.
Doomsters will begin to spread fear about inflation, but stock markets have coexisted for years with inflation. Stocks are a betterhedge than safe havens.
Institutions are steady buyers as evidenced by advancing prices with little volatility. More buyers coming from investors switching out of safe havens.
With the reports on US economy, Japan and China portraying the image of a cooling global economy safe haven assets like Dollar have been brought in bulk by investors causing gold prices to fall.
2012 is fast approaching and many investors are looking to hold onto their hats in a storm of economic influencers from debt in Europe to gridlock in Congress.
Hong Kong's Hang Seng Index dropped below its 50-day moving average as the worsening European debt crisis hit global markets hard. Turnover sank, reflecting investors' caution.
A stall in the market in general stands to mask internal opportunities as profit takers invest in other stocks. New money will come from that parked in safe havens.
Emerging economies could be an engine for growth at Coca Cola, Pepsi Co and Caterpillar. With many other safe-havens looking overbought, these three stocks look well priced and primed for ongoing strength.
Institutions and hedge funds are under increased pressure to BUY. The absence of pullbacks in stocks is forcing them to pay-up, a major driver of the bull market.
After a five-day correction, the market rebounded off projected support and is set to attack last week's bull market highs. Lots of cash earmarked for stocks !
There have been indications of oil reaching $150 per barrel by mid-summer, but there are a couple items investors need to watch for that could affect this move.
While eyes are mostly on Greece and Iran, someone is in there buying stock. At some point , sideline-sitters will start buying, and that's when this market will hum.