A mixed bag but tough to fight. 

Another strong day for the Dow and S&P 500 but not all the indices were higher in spite of the trend for stocks to give back Fed meeting gains.  For some reason technology stocks did not participate in the rally.  Perhaps the Apple Computer downgrades affected the tech mood.  It could be a one day blip but you need tech to lead a rally.  But that doesn't take away from the fact that the S&P 500 made a new high and the Dow looks to be reaching for 11,000 again. 

We are getting closer to the holiday bullish stretch which proved to be profitable during Thanksgiving even though the market was already overbought back then.  It seems futile to fight as the flow seems to be up, but I can't help but feel like stocks are swimming upstream.  The two week consolidation may have given it some needed strength, but how much?  The question is when, not if, the market gives us a strong pullback.  Will it start before or after the holidays?  Odds favor after but who knows.  When the rug was pulled out from underneath us last January, it was a swift and deep drop.


                                     Chart provided courtesy of www.decisionpoint.com


The folks at sentimentrader.com have given us another chart that show us the flow of assets going into equity (stock) mutual funds.  When this figure reaches certain levels, it tells us that people are getting a bit too giddy about the market.  We are seeing levels that we haven't seen in two years. 


                    Chart provided courtesy of www.sentimentrader.com

You can compare the S&P 500 chart (in gray) to these peak levels and you can see the that these mutual funds take in the most money close to market peaks. 

But again, counting on a pullback before the holiday may be foolish on my part.  I missed out on that Thanksgiving rally.  I'll have to see how things go before I decide if I will jump in for the late December seasonal rally. 

The dollar dropped hard again yesterday and it is getting close to the bullish support line.  If that breaks, the longer term strength of the dollar could be in jeopardy.  That would be beneficial to the I fund. 

After one of the worst days we've seen in bonds in a long time on Friday, yesterday we saw one of the best.  They still has more to go if they are going to confirm a new uptrend. 

That's all for today.  Currently 100% F fund.  Thanks for reading.