In sharp contrast with yesterday, equities are bright green all across the board today. if you look at the big picture from April 7th, however, you can see how the uptrend has fizzled out. We have spent the past couple of weeks drifting aimlessly below the broken trendline, and the past five trading days in particular have been a total bore-fest, as seen with the DIA:
In spite of all the tech strength, the QQQ is almost the same story. It hasn’t broken its uptrend as cleanly as the DIA, but the line has definitely been fractured.
Most importantly, the Mag7-Heavy SPY is lingering near lifetime high territory and yet has also broken its uptrend and is more in ‘flatline’ mode in recent days. It’s no surprise, really, with no government data and no meaningful earnings to inspire direction. The market is floating at lifetime highs waiting for……….anything.
As for my love/hate relationship with PALL, I thought I’d highlight the point in January where I emphasized it as a long position (see arrow). You can see that this has been a nettlesome trade right from the get-go.
The magenta zone marks where it would have been a LOSS, but more importantly, this sucker spent MONTHS just screwing around, wiggling up and down, being totally indecisive. Finally, starting about five months after my post, it put its rocket boosters on. It also had about 20% of its flesh sliced off before rocketing with even more strength. Maddening!
My only hope at this point is for a retracement, which may or may not ever come. The ideal situation would be something like what is shown below. If it does, in fact, retrace, and if I do, in fact, buy back in, you do, in fact, have the right to kill me if I dare consider selling it again.
