TCM Notes : 7/27/09

• The rally over the last two weeks has erased all the distribution days, and has confirmed the market's uptrend. From Bernanke to Art Cashin the consensus seems to be to hold your nose and buy. While I agree the markets have flashed confirmed buy signals, being a market timer, I would caution about chasing strength when conditions are getting overbought. With over 85% of stocks trading over their 20dma there is room for a pullback. There is also plenty of economic data on the horizon to lend way to a modest pullback.