As expected, the Dow blew past the upper threshold of the wedge formation pictured here Friday, gapping well above it on the opening bar. We’d predicted a 250-point surge, but the Indoos did a little better, gaining 306 points at the intraday high. This price action confirms what we already knew — i.e., that stocks are incapable of leaping higher unless powered by the kind of short covering that usually turns up in the first few seconds of the day, if at all. What was interesting about Friday’s rally is that it didn’t sputter out and reverse within minutes. Instead, buyers kept at it for the next hour, peaking at around 10:50 a.m. This strongly suggests they’ll be back when the new week begins, even if unlikely to tip their hand right away, as they tend to do on Fridays.
Bears Do Their Bit to Keep Stocks Buoyant
- January 28, 2019, 10:56 am
I wonder why Trump is playing games with Pelosi over the State of the Union Address.
It makes him look weak and indecisive.
He does not need to make a long, boring speech and get booed by the Democrats on national television.
He can just release it in a written statement like this one.
Or better yet, in one of his “Tweets!”
“If you love Open Borders, Free Trade,and the Welfare Culture, then the State of the Union is just grand!”
“If you think that Open Borders, Free Trade and the Welfare Culture have been destroying this country for the past fifty years then the State of the Union is just horrible.”
It really is just that simple!