Things looked bleak Monday morning as the Dow surrendered some 130 points before storming back in the last hour to wipe out all losses. The only negative about the comeback was that it occurred on very low volume.
It’s been a recurring theme lately that early bearish tendencies did not hold, and the bulls ended up in the driver’s seat.
Yesterday’s late buying was triggered by Nobel Prize winning economist Paul Krugman, who commented that the U.S. economy may start to emerge from the recession in September. This hopeful outlook turned what appeared to be a rut into a rebound rally. Go figure.
Not much changed with our Trend Tracking Indexes (TTIs), which are now showing the following positions:
Domestic TTI: +0.50%
International TTI: +8.84%
Hedge TTI: +0.45%
We are holding all positions subject to our sell stops.