Another impressive day for equities, the S&P continues to charge upward and we will likely revisit recent highs soon. The next two days should be interesting, we have some important figures out tomorrow (Jobless Claims, Chicago PMI and Factory Orders) and on Friday (Non Farm Payrolls, Unemployment, ISM and Construction Spending) so we’ll see how the market reacts to their prints. I would like to add though that in order for Bernanke to press on with another QE he really needs the public and congress to see poor economic figures and “low inflation” ehem core cpi is bs to confirm that they need to continue QE to affirm their mandate. So a lot of times even numbers that miss consensus and look terrible actually have a bullish affect pushing market participants to further drive equities higher in the expectation of continued excess liquidity from the fed.
Anyway WFMI had an outstanding day today closing near its highs again as it did yesterday. The only question is how much further? Tomorrow we’ll see if we can’t push further up, I have a belief that the market likes to push prices to “even” or “pretty” price levels. So if a stock goes to 47 it will likely travel 3 dollars more to 50 or 97 to 100 etc. etc. Obviously this isn’t something we should count on but I firmly believe that WFMI would look damn good at 70.
NRG made a decent move today confirming a breakout, MHP on the other hand painted somewhat of a bearish doji. Right now looking ike more upside in NRG but with MHP the possibility of a pullback is increasing its important to observe though that the doji has a relatively small body and pretty big tails. Obviously today there was indecision between buyers and sellers and no side (from a daily basis) really had control. Therefore this bar could be just a trading range bar. Upside break of today’s high will confirm, a downside break will confirm bearish doji.