U.S. stocks increases further again yesterday as we predicted. The Dow made its 7th gaining day in row and made a third day of triple-digit gains. It seems the momentum is overwhelmingly bullish and nobody cares anymore about Syria and Apple huge drop. All the leading indexes are on historical high or very close to that level, included the Europeans too like FTSE, DAX, SUI, IBEX, CAC40. The Nikkei is a bit lagging behind, dueto the JPY strengthening pace, but we bet on that shortly it will go to new historical high either.. I was
Across the board all US indexes erasing losses and extending gains into a seventh day in row, the SP500 +0.31%, at 1,689. Only the Nasdaq is solidly lower, it was in red territory yesterday, -0.11% lost to 3,725. The only reason was the plunge of Apple stock. The Dow +0.89% rose to 15,326. As we said our previous article it used to be lagging and in the last 3 dayscatched up a bit its other peers, +0,89% to 15,327.
Despite the Apple -5,4% huge fall the sentiment is perfectly bullish, what the market does is only repricing the Apple to its real value. This is the end of super story of Apple is not sexy any more for the investors. If something comes back from 700USD to 400USD that suggest me not buying anymore. It must be some fundamental reasons behind. If the stock is not able to gaining in this kind of optimism it means something wrong.
In the bigger picture of technical side, we are still bullish across the board mostly on Dow, which is still slower than the others. We havebuilt up nice pyramid positions in the last couple of weeks so recently and in the following weeks we are going to basket the profit. In terms of Dow our first target is at the key level of 15.440 that is only 100 points from the current level. If it is taken and we are pretty sure it should be up to the next support level and historical top, 15650.
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