almut's - copock shlopock - friday again, page-11

In America:

Dow Industrials +1.87%
Dow Transports +1.89%
SP500 +2.04%
Russell 2000 +2.04%
Nasdaq100 +2.27%

Comment: A wide range day – on very high volume. The best one-day performance since 29 June when the Dow was up 2.2%

Yesterday I said: "It looks like the market is waiting to see whether Mario (Whatever It Takes) Draghi from the ECB is all talk or has the big bazookas." Well, he has the big bazookas. And everybody gets a free lunch. You can start lining up at your local MacDonald's now.

The ECB decided to engage in unlimited buying of short term government bonds - dependent on the countries meeting certain fiscal conditions. The only dissenting voice, naturally, was the German Bundesbank president, Jens Weidman. For the full story, with the ifs and buts, see http://www.cnbc.com/id/48932267

NewHighs/NewLows 311/11. NH>NL. The ratio of NH/(NH+NL) is at 96.6%. In the Do Not Sell Zone. These are bullish numbers. We haven't seen numbers like these since early February.

Technical Comment on the Dow30:

The Dow finished at 13292. Support/resistance: 13055/13340
MACD Histogram. Above zero. Positive.
MACD. Below zero. Negative.
RSI.9 is at 64.8. Positive - in a zone where pull backs can occur.
Stochastic. 41.9. Positive.
CCI.14: +72.2. Rising above zero. Positive.

The chart remains within the confines of a medium term up trend channel. The short term trend is up.

Dow 30 has bounced off the lower Bollinger Band. Today it reached a new closing high, but not an intra-day high.

Momentum indicators suggest there's more in this. But, maybe not a lot more. I wouldn't get too euphoric yet.

Industrial Metals were up +0.16%. The Ozzie Dollar was up over 1% and finished just below 103. US$ Gold was up +0.35%. It looks like it had already priced in the Draghi move. BHP on the NYSE had a great move up +2.79%

Redbacka