Wednesday, August 8, 2007

IBD says Market in Confirmed Rally

Anyone catch the subtle shift? They've changed their tilt from "market in correction" to "confirmed rally." They seemed to like the big day we had this past Monday, coming on day 4 of the new rally and it was confirmation of a directional change in the market. Yesterday's Fed announcement continued with their focus & vigilance to inflationary threats, but they did acknowledge heightened credit risks to households, etc..and the market appears to have applauded this modest shift. Financial stocks and home builders had big positive moves yesterday, including the brokerage names too. Many will probably conclude the "all clear signal" isn't necessarily a given, but there is a breadth of fresh air and a collective sigh on Wall Street. Therefore, with plenty of concern and fear still evident, this market might begin to climb the proverbial wall of worry again.

No comments: