A Very Bullish Last Hour With An Extremely Bullish Last Five Minutes Helped Lift Stocks Higher On Higher Volume

March 25, 2009

Watching the market intraday you would have been quite disappointed if you had left your desk at 2pm and did not return. The market was racing higher throughout most of the morning and volume was running along with it. Such a strong push with volume was encouraging, but it stalled and began to roll over showing signs of major weakness. By 2pm the market had slid into negative territory and heading straight for an awful and damaging distribution. That wasn’t to be the case, stocks were able to find footing and make a stand at the end of the day notching a day of accumulation. A very positive day indeed.

Aside from the market notching a bullish intraday reversal on favorable volume the NH vs NL ratio has been positive for the past 3 days. Amazing, this ratio has not seen positive territory in QUITE SOME TIME! Whether or not this is a Bull run in a secular Bear market we still could see hefty gains. The NH/NL ratio is signalling that we may have something behind this move.

More importantly, aside from “internals” is market leadership. We are beginning to see stocks begin to move (for those who subscribe to Gold/Platinum know) into more leadership roles within this market. A very positive sign indeed to sustain any lengthy rally.

What I wrote yesterday, about whether or not you should be a “bull or bear” certainly held true for yesterday’s action. For permabears the action yesterday may have appeared to be the “top” but the last hour of trading would have destroyed that notion. I too, was thinking this may be THE top of this most recent rally but after seeing the end of day action that was quickly put to rest. It is important to follow the market cues and they are letting us know we may have a sustainable push higher. More importantly, we may have stocks that want to run more than 20%.

We will continue to ride the trend higher and pick off stocks that are making moves. There are a few CANSLIM quality stocks forming bases even one breaking out. Our members are certainly going to benefit from this market. Stay disciplined!

Market Speculator

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