Monday, July 21, 2008

Hot Hand Handicaps the Bounce

From 1440 Wall Street:
How much gas does the rally have left in it?

1320 at best, on the S&P 500, before reality sets back in, according to the hottest technical analyst on the Street, ISI Group's Jeff DeGraaf.

The sudden appetite for oversold financials came at the expense of energy stocks, as a mini-rotation took hold. Energy stocks, at least if the Energy Select Spyder is your proxy (XLE-AMEX), have been the source of funds, along with idle cash. But breakouts in rank and file stocks are few and far between, despite the one day wonders we experienced last week in breadth and volume....MORE