Being involved in the XJO is a humbling and gratifying experience. For all sorts of reasons. Two of the most important - the intelligence and compassion that so many people exhibit. All I can say is: Thanks.
In America:
SP500 +1.03%, Dow Industrials +0.73%, Nasdaq 100 +1.6%, NY Composite +0.89%, Russell 2000 +1.59%, Transport +1.28%.
Yesterday, on my blog, I had some general comments on the terrible events in the Ukraine and Gaza and how they might affect markets. I said something to the effect that this bull market is unstoppable. I must admit I thought we’d see a couple of days of slowing – but this market, at least in America, came roaring back today. The Australian market yesterday pre-empted that move after opening well down, it rose for most of the day and finished well on the positive side. Now, this bull market will stop – some day. I see no indication of it just yet.
But the Europeans are not looking so chipper. Here’s a group of major international shares in NY:
Australia, Canada, Mexico, and the Asians are still holding up well. The Europeans are weak. With the exceptions of the UK and Spain, the charts show the 20-Day below the 50-Day. For trend followers those x-overs are bearish. The only other two, UK and Spain, a bearish x-over looks imminent.
To sum up: U.S. Australia, Canada, Mexico and Asian stock markets remain strong. Europeans weak. The notion of correlated world markets has become unstuck. Who’s right? Which way will the strength/weakness flow? Europe is arguably as big an economic unit as America. Followed by China. Does Europe pull everything down, or U.S./China pull everything up? Or will we now be looking at a bifurcated world? I don’t know. But we’ll watch with interest as this plays out.
Redbacka
(20min delay)