• Comments for December 2, 2015

    Yesterday saw a push higher all across equities as a Fed member hinted doubt about a rate hike. This was just what the market needed to trigger December seasonality buying.



    Energy also attracted money, although oil is back into a bearish mode.





    Gold miners also attracted money, although gold and silver are going nowhere for now.







    Sectors that attracted the most money are related to low interest.



    And of course, Treasuries attracted money.



    Housing climbed, but the money flow on XHB looks rather weak.



    The Euro is now touching the upper limit of its downtrend.



    Mammoth stocks were also up with the rest



    Biotech (IBB) also rose at the end of the day, but the MF still looks weak.



    Conclusions

    This type of coordinated move of money in or out of different instruments can give us a clue. As of now, the move was only a reaction to a Fed comment. We need to see whether conviction builds on the bullish side (no rate hike.)

    I am still keeping my 50% long position and might add to it with a careful selection of equities that will probably gain.

    CSCO could be interesting. It is in a very low stable Supply zone and we can detect strong buying. Of course, this could be the company itself buying shares. But anyway, the latest earnings were good and the sector is doing fine. I intend to buy today.