Can The Market Rally At Warp Speed?

I went into a friend’s guestroom to grab my purse and saw this on the shelf.

In my constant search for photos to use as metaphors, Mr. Potato Head’s Star Trek featuring Captain Kirk and Klingon Kor seemed deliciously apropos.

This reminds me of one of my favorite jokes-What does toilet paper and Star Trek have in common?

The answer is a bit indelicate so I will save it for the very end.

The point is, Kirk sought to destroy Klingons.

In the market, Kirk is the captain of the Economic Modern Family today or the Russell 2000.

The Modern Family has yet to “boldly go where no man has gone before,” as they are way off from all-time highs.

Nevertheless, Captain Kirk, I mean Granddad Russell, held onto recent gains.

If the small caps are Captain Kirk, that makes Klingon Kor the news.

The S&P 500 and Nasdaq turned red after the British Parliament delayed the Brexit vote.

As we have repeatedly seen, the news can either cause the market Klingon-type issues (Brexit) or drive it to rally at warp speed (Trade War progress).

The potatoes remind us to try not to take the constant bombardment of news, fake or real, too seriously.

Just follow price.

(Click on image to enlarge)

Last night I posted weekly charts of the four indices.

Today, here are the Daily charts.

Except for IWM, all are in strong bullish phases.

IWM is in an accumulation phase.

SPY, QQQs, and DIA show how they have climbed near the top of the recent trading range highs. IWM has quite a distance to go.

The question right now is who leads and who lags?

IWM is trying to catch up because like Kirk, who never lost his optimism, the small caps hope for better news with China. And if not, they bank on a cooperative Federal Reserve.

SPY and QQQs fell partly because of Brexit, but also because of some softer earnings potentially on tap.

Should IWM and IYT continue their lead, warp speed.

Should they fall victim to the Klingons, we will need an emergency transport (or a beam me up to higher prices Scotty!).

1 2
View single page >> |

Disclosure: None.

If you'd like more information about the additional free trading education mentioned ...

more
How did you like this article? Let us know so we can better customize your reading experience. Users' ratings are only visible to themselves.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.