State of the Market

The market continues to rally as the Fed lowers key lending rates.

Rate cuts are having a negative effect on US bonds relative to foreign ones.

Up volume significantly outweighed down volume, continuing the bullish theme.

More stocks are trading above their 50dma on lower volatility.

New highs are becoming more prevalent as this index makes a new X.

The oddest thing about today's action was LOWER treasury yields... What The Fuck?!?

The action in Treasuries is mystifying, but it isn't stopping me from trading gold and silver related stocks. The USD has been getting trashed, and while I expect a few bounces, the writing is on the wall. We're still in high risk territory, and the whipsaws will continue, but I'm buying the dip in the strongest sectors.

Volatility Charts

Fortune favors the bulls as the rally continues.

More stocks are getting bullish and the volatility is dropping.

Stocks above the 50dma are increasing, but we don't have a confirmed trend.

There are an increasing number of stocks making all time highs, but it's still meager.

The spread between short and long term volatility is normalizing, but it may indicate complacency.

Risks are still high, but a proverbial toe in the water won't drown bullish speculators if they play the right sectors. Staples, Telecoms and Heath Care aren't moving, but Basic Materials and Energy are flying high. The bond market continues to exhibit a flight to quality, so remain cautious.

Wednesday Wrapup

The short term uptrend grows stronger by the day.

The Bullidex (Bullish Percent Index / Volatility Index) has finally registered some new X's.

More stocks continue to rise above the 50dma on decreasing volatility.

Finally, an increasing number of stocks are trading at new highs.

Market internals continue to strengthen as an increasing number of stocks are rising with less volatility. With many companies trading at low valuations, unprecedented levels of liquidity, and a psychologically stunned general public, the conditions remain optimal for a rally.