This is extremely bearish since higher oil price is continuing to pressure consumer spending, shorting weak stocks continuing to hurt investors unless in hedge funds, and hyping a few parabolic big caps stocks melting financial markets.
LET'S TAKE A LOOK AT MARKET ACTIONS:
As noted earlier, markets are in momentum mode with high volatility on individual stocks, not like 2000 because we have a lot of hedge fund activities with shorting stocks and better PE on parabolic price action stocks.
The typical GOOG parabolic along with AMZN, focusing internet sector, price action is irrational while YHOO and GOOG can not fill 2005 and 2006 big gap downs.
Internally, we have too much slaughtering is going on while major markets are making new highs and commodity going parabolic. This is suggesting that the market actions appear to be hedge fund activities, not healthy financial market actions.
This kind of activities will soon seriously impact our economy affecting many as well as financial markets when mutual and hedge funds turn bearish.
Market actions, so far, show bearish actions instead of bullish even though markets are trading higher with a few big cap parabolic actions.
http://www.stockcharts.com/c-sc/sc?s=$WTIC&p=D&yr=0&mn=11&dy=0&i=p13431343965&a=80157012&r=368.png
http://www.stockcharts.com/c-sc/sc?s=$GASO&p=D&yr=0&mn=8&dy=0&i=p88532407340&a=102752904&r=698.png
http://www.stockcharts.com/c-sc/sc?s=$CRB&p=D&yr=0&mn=11&dy=0&i=p38583385896&a=90444715&r=287.png
Edited by Trend-Signals, 06 November 2007 - 05:53 PM.