The chart of FedEx is sending a powerful message to skeptics about the global economy (as well as the US economy) finally digging its way out of the funk its been in. The story remains - bull markets don't end until the dual mandates (of the Fed) start setting speed limits on monetary liquidity. This chart is telling a story that we will start to hear of more optimism soon.
Next, let's look at an indicator that shows how powerful the action in the market was last week.
We've been showing you the McClellan and 21-Day Oscillator with the premise that we wouldn't be turning extremely bullish on the short-term until the 21-Day Oscillator moved down to at least the -50 line. That remains the case...for the short-term outlook. But you can see above that the move on Friday went a long way to eliminating the dysfunction we've been seeing internally. We can still find a few warts, but the great bull market continues to surge ahead.
We will still be playing the short-term with a conservative note until we see a more opportune set of conditions, but for the more important long-term participation in this powerful bull market, we continue to see much higher prices in the years ahead.
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