untoward friday, page-128

San Felipe, it cascaded down in a straight line from April to May so why can't it keep going up in a straight line? lol only kidding I'm not that bullish I can assure you plus markets have a habit of taking the elevator down and the stairs up so the straight line up doubtful.

Never thought I'd say this but all those analysts who predicted high volatility and a flat 2010 are looking like they got it right at this stage (for once!). I wouldn't be surprised to see a rest shortly (maybe 4430ish) which will pull the daily stochastic down from overbought. It will also get the USD up a bit which looks very low atm and the EURO looks toppy imo. US $/Yen carry trade also looks like it's ready to reverse, currently at a 15 year low (if you exclude intraday). Until weekly stochastics (SPX,DJIA,XJO) start pointing sideways or down (currently pointing up) I real remain a bull.

On a fundamental note I think deflation in the US is definitely on the cards. My theory is the big hedge fund instos were on to this early (since the last bottom) and have been buying any dips/pullbacks, they know that the Fed will do anything they can to prevent deflation meaning more quantitative easing on the horizon = good for equities.

Mongo, cheers I learnt from the best lol.