I still believe this bullishness originates with optimistic expectations about the tax deal as well as the Japanese-US quid pro quo related to the US military protection against NK in exchange for Japanese liquidity injections.
Anyway, the Cumulative Tick of the past three days is impressive.
The NQ8 stocks which looked weaker have now bounced back up.
The small caps have also been squeezed, although the Money Flow does not show strong accumulation.
One area that might still have some sort of upside potential is the energy sector.
The most negative aspect of this market is the Yen/Treasuries buying activity, which is supposed to pull money out of equities.
Conclusions:
The best is to still stay long during this Thanksgiving week.
Yesterday, I posted a few figures on potential short trades. I repost the same figures below. We can see that none of these stocks was hardly squeezed into covering yesterday. These are hence still short candidates, but maybe only next week, after this wave of bullishness is behind us.
