Monday, July 03, 2006 Weekend commentary

Newsletter, Members Click HereMarket retained Thursday's gains with relative ease. Volume climbed above Thursday's, with some markets at moving average resistance. These included the Dow at 11,187 (the 50-day MA), the Russell 2000 at 727 (also the 50-day MA) and the S&P at 1,275 (the 50-day MA). Better news for the bulls was the re-establishment of the bullish sequence of strength with small caps leading tech stocks leading large caps. There was unlikely to be any big change into the 'long' weekend and one cannot see Monday been any different.

Tech market internals [$NASI, $NAA50 and $BPCOMPQ] continued their improvement, closing up on building momentum. The key indicator to watch is volatility. The days of lackluster activity look over for now and future dips back to the 200-day MA are likely to see bounces (i.e. increase) in volatility. It could be a rough time for swing traders.

Newsletter update (to subscribe, select a payment option in the right-hand-margin):

MW drifted back to its stop price (and through its 200-day MA) over a period of two months. The January 6th Subscriber play closed 10 cents shy of its target price, finishing down 8%.