David, have a bad bout of the flue, haven’t had a cold in years, so it has been knocking me around. US markets continuing along nicely with the Russel leading the way. The RUT is a good reflection of the small cap demand which is continuing rotation into them as well as resources, which is positive. The world is now becoming complacent with growth in the US, and a gradual stepped wing back of QE. The SP500 lags and has not produced a new all time high, although very close to the mark. It has however produced a new all time high for a close. The indicies have moved well above the mean (MAs), so a correction or pullback again on the way upward is likely within the next possible 2 weeks, it certainly would now surprise. LNC on Friday was a tug of war, with the sellers in control initially, and the buyers coming back at the end. Selling pressure is starting to increase, the appearance of selling pressure raises the yellow flag. The break out From the falling wedge at 1.11 signaled a perfect entry as I had previously posted. Above we have the 200MA around the 1.50, 38.2% fib at 1.65, a trading range of 1.76/1.80 to low $2.00s. and a 50% fib at 1.92. A close above 1.75 would put us in a new range. Sell the news and take some off the table would be a good idea for today. It needs a breather from its stellar run up, and a pullback to low 1.30s would be ideal. Good news in the US with more success in LNC oil. Some early flow rates can be deceptive and drop off quickly, but special mention of lower decline rates is great news. LNC continues to add value to the Gulf purchases.
LNC Price at posting:
$1.50 Sentiment: Hold Disclosure: Held
