The markets took off yesterday after some decent first quarter earnings reports from eBay along with bullish guidance from Intel pushed the Dow to a 257 point gain. Helping matters were better-than-expected numbers from JP Morgan Chase and Wells Fargo. Sky-high crude oil prices did not seem to matter.
IBM’s after-hours bullish report, along with raised profit guidance, could fuel the rally, at least for the short-term. The positions of our Trend Tracking Indexes (TTIs) improved as well and in the domestic arena we have now moved back to the upper end of the trading range:
Domestic TTI: +1.05%
International TTI: -4.13%
Again, to move out the neutral zone and into an all-out domestic Buy signal, we will need to pierce the upper end of the trading range at +1.50% and stay there for a few days. Until then, we will remain mostly on the sidelines, but may take small positions in those indexes that already have pierced through to the upside and are beginning to establish a new trend.
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