The U.S. markets are blasting higher, with INDU making new all time highs this past week, and the SPX close to its own all time record high reached in 2000. BKX and XBD -- two of our "canaries" -- were also very strong last week, due to some good earnings reports, and the prospect for Congressional action to "bail out" lenders/borrowers with respect to problem housing loans. GSEs are also suddenly interested in buying subprime housing loans. http://www.washingtonpost.com/wp-dyn/content/article/2007/04/18/AR2007041802499.html?hpid=sec-business This news also helped our third "canary," the housing index, push higher last week. So much good news -- while the U.S. dollar hit a 26 year low against the British pound. The late February/March sell off earlier this year is a distant memory in the minds of "whoever" is buying here.
After retesting moving average support, noted in last wekend's review, the major U.S. indices switched to buy signals. This past week, our Aggressive Method remained on those buy signals for most of the U.S. indices, except one - the one we like to trade. It looks like we may be whipped out of a short in IWM. Details must be left for our members.
Oil (USO) broke down a bit last week and our Aggressive Method triggered a sell signal. Although USO had a good up day Friday, it is still below resistance of the 50 day MA.
