July 8th, 2014
by Jeff Pierce, Zentrader
Ya gotta give the Feds their due credit with this melt up job they've created. We all hear the "don't fight the fed" adage time and time again but do we always listen? My long term timing indicator for the Nasdaq has flipped bullish, so the bulls look like they are having their day in the sun. I just can't help but feel that the markets are really over extended here and are trying to sucker in every last bear out there to buy buy buy (as cramer would say). Be careful here as I'd rather be a buyer on a pullback then a buyer when the markets have a big rally day after a nice long rally.
With earnings season starting very soon we'll have plenty of time to identify new trading opportunities that are breaking out of solid bases.
A lot of room to fall if this index starts to pull back.
TLT has rallied into an area where I felt it would run into resistance. There doesn't seem to be much correlation to the general markets right now so TLT is not a worthwhile gauge to monitor for market direction.