Available 3:00 Pacific.
DOW + 236 on 1350 net advances
NASDAQ COMP + 63 on 1300 net advances
SHORT TERM TREND Bullish (change)
INTERMEDIATE TERM TREND Bullish
STOCKS: According to the financial talking heads a prominent reason for the rally was progress in Europe on the Greek situation. Strength in Europe triggered an up move over here.
Our explanation is that the market was very oversold and ripe for a bounce. It merely needed a trigger. Greece gave it.
GOLD: Gold was up $8. Dollar weakness and German bond jitters were cited.
NEXT DAY: Neutral. After today’s strength, Thursday’s action is uncertain.
CHART: An advance decline ratio of 2.0 or greater is frequently a kickoff to a sustained rally. Sometimes it can be climactic. Our best estimate is the former.
BOTTOM LINE: (Trading)
Our intermediate term system is on a buy from Feb. 20, 2015.
System 7 We bought the SSO at 66.25 and sold at 67.23 for a gain of .98. Stay in cash on Thursday.
System 8 We are in cash. Stay there on Thursday.
GOLD We are in cash. Stay there.
News and fundamentals: There are no important releases on Wednesday. On Thursday we get jobless claims and retail sales.
Interesting Stuff The Greek situation is so tiresome. It’s getting better. No, it’s getting worse. No, it’s getting better. It’s a soap opera that never ends.
TORONTO EXCHAN GE: Toronto gained 71.
S&P/TSX VENTURE COMP: The TSX rose 1.
BONDS: Bonds were down again to another new low.
THE REST: The dollar was lower. Silver was up slightly. Crude oil surged again.
We’re on a sell for bonds as of June 3.
We’re on a sell for the dollar and a buy for the euro as of June 2.
We’re on a sell for gold as of May 19.
We’re on a sell for silver as of May 19.
We’re on a sell for crude oil as of June 4.
We’re on a sell for the Toronto Stock Exchange as of May 6.
We’re on a sell for the S&P\TSX Venture Fund as of October 30.
We are on a long term buy signal for the markets of the U.S., Canada, Britain, Germany and France.