A pilot friend of mine defines “cloud surfing” as flying just above the clouds – i.e. skimming the upper-side like a boat on the water. Once again, that appears to be the action in the overall markets as well.
When last I posted (March 3rd), the 15 month ichimoku charts were all above their support zones. The 3-ish week pullback we had from the Feb 18 high only served to bring price down to support; none of the indexes broke down through. Since then, as you all know, the only direction has been north- and we have broken out above the clouds again. Of interest for me is the Dow’s and S&P’s long-term overhead resistance. NASDAQ crushed its LT resistance back in October 2010, but currently seems to be struggling (a tiny bit) with its upper cloud boundary:
Just for fun, I also took a look at a few symbols that have been on Slope as of late: Latin America, Japan and the 20-year Treasury:
ILF: I started watching this one after Tim mentioned it as a short (truthfully, the Sofia Vergara photos were what caught my attention). In any case, yesterday my oscillator warned “buy/cover” and was confirmed with a break out today:
Gratuitous Sofia photo:
EWJ: Obvious short a few weeks ago… I’m still holding, as I sadly do not think they are on top of anything yet. I would cover with a break of resistance.
TLT: Oscillator signalled “buy” around Valentine’s Day, but I’m waiting for a conformational break through the upper cloud boundary – which looks darn close: