STOCKS MOVE HIGHER ON GOOD NEWS
Monday started well for stocks continuing a rally from the previous three trading days. A good outlook from FedEx and better than expected New Home Sales data got bulls pumped-up. (Previously, all economic data was ignored.) The only fly in the ointment today was ultra-light volume and short-term overbought conditions.
Market participants want stocks to rise since they have little investment alternative other than low-yielding fixed income sectors. If you're a portfolio manager it's just that simple. Further, we head in to the end of July with enough good performance to send DJIA to positive return for 2010. So, with outflows from equity mutual funds continuing end of the month window dressing and volume light TPTB want to provide Main Street more encouragement. Yeah, that's pretty cynical.SPY: The volume is still rolling in as this is written with an extra 30M shares in the last 20 minutes to make things look more respectable. But weekly charts haven't turned the corner for me yet and I'm forced to pay up to play when and if they do. Continue to Major U.S. Markets