I guess the most ironic thing we’ve learned from the shutdown/debt crisis is that if we hadn’t read a single news item, we wouldn’t even know there WAS a crisis.
In fact, this points out the real value of technical analysis as it presents an objective view of what’s happening in the market. And there we saw a pretty text-book pattern: an overbought market that pulled back to its uptrend line before bouncing!
Over the years many people have been drawn to ETF’s as they’re an easy way to invest, while taking away a lot of the risk individual stocks present.
They also can open your eyes to what’s really happening in the market, and that drew me to MDY, which made an all-time closing high last week. Clearly something good is happening to these stocks, and I think more good things are coming.
Keeping with the ETF theme, I thought I’d also look at crowd favorite QQQ. It’s not quite as strong as MDY, but it’s getting there. Be patient waiting for the breakout and I think you’ll be rewarded.
Back next week to see if all the strength I’m seeing is real.
Gary B. Smith joined FOX News Channel in 1999 and is currently a regular commentator on "Bulls & Bears," including his own segment called, "The Chartman."