Week in review: We should give equity bulls more time to show their strength

greenback · 发表于 2013-6-16 11:46 PM

本帖最后由 greenback 于 2013-6-17 11:14 AM 编辑

Here is our view on equity ... Again first on weekly chart.

Here are several observations:

1. SPX has not gone below MA10 for quite some time. This is very bullish. The pullback in the last few weeks can't be viewed as bear attack at all. It's more like a consolidation after the previous over bought actions during the four weeks before the pullback.
2. Russell has been relatively stronger than other indices. This can't happen at the beginning of a bear market. Russell has always been leading in the race down in the past.
3. The worst performer NIKKEI has finished 50% retracement from the Nov low to the May high. It's time to reverse. Simply because the momentum in the last half year is too strong. Per Cobra, investors always try a direction twice or three times before switching direction.
4. Finally the second weakest DAX also found support at ma20.

So we still want to bet with bulls next week. This is consistent with the observation in the global bond market.