Securities Research Services

Thursday, May 10, 2007

Positive Bias Continues After Fed

Stocks are really extended here, but a truism about the market is that an extended condition can last much longer than seems reasonable. The bullish case is this:

Stocks and indices continue to consolidate near the top of their ranges, response to the Fed was relatively positive yesterday, and sentiment continues to betray a level of too much distrust.

As long as these positives remain in place, it pays to stay bullish with tight stops.

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