The Rally Continues

Stocks gapped up this morning and then kind of petered out a little in afternoon trading, but the rally is still going. We all know that the weak dollar is influencing stock prices, in fact, the two markets are correlated pretty tightly right now. Stocks are trending to the point where I'm long and holding overnight positions again, even though everyone is suspect of this rally. The key is to trade the signals...not the opinions of others.

Here's an hourly chart of the S&P 500 index with the TLT Trender v2 and some annotations:Personally, I think that we'll see new highs by the end of the week and then probably a quick pop up as shorts have to cover, but take that for what it's worth as it's only an opinion that can change on a dime. Next up, here's the Eur/Usd hourly chart also with the TLT v2 indicator (green, red, blue bars) and some annotations:As always, the goal is to watch price action and let that dictate what the next move will be. I must admit, I've gotten quite bullish after seeing the market shrug off the unemployment numbers last Friday and then rally and hold those gains this week...smells like strength to me.

Happy Veteran's Day and I want to give a big THANK YOU to all those that have served and currently serve our country in the armed forces.

TLT