Market Monitor

• A 200 plus breakout day has accelerated the three day rally. Expect strength to last for few days. Momentum feeds on itself and takes time to disappear.
• We are back to where we started before the few days of correction. The 100% plus and 65 days numbers are almost back to where they were 10 days ago.
• One of the very interesting feature of the rally so far has been, the strength in stocks with good fundamentals. The IBD kind of stocks have lead the rally and gone in to bases during correction. Few stocks are showing signs of top as yet. With next earning season fast approaching, we are set up for an interesting period. If market keeps rallying in to next earning season, then it will correct post earning. If it corrects for few weeks before earnings, that will be good sign.
  
• The commodities stocks have broken out in recent weeks. Does that signal a slowing economy to you.
  
• The small caps are dominating the scene in recent weeks, indicating further broadening of the move.
• If you were following any of the methods like Episodic Pivots, IBD 200, or Double Trouble, you should have benefited very well from them. A few days of correction gives you very good opportunities in all these methods. The minor weakness witnessed 10 days or so ago, set us up for few days of good action.