Daily Market Comments 15 May 06 by MastersoEquity.com

A very encouraging day at the markets indeed. Both DJIA and NASDAQ stayed up strongly along with a last hour rally to close Up 1.03% and 0.65% respectively. So, is this the accumulation that we have been waiting for so long? Well, 2 factors says that it is really less exciting than we hoped it to be... 1, Breadth reading is pretty lousy with advancers barely leading decliners. In a full blown accumulation, advancers should show significant leadership against decliners with a 70%/30% ratio at least. 2, There really isn't excitement in the markets. The beginning of any significant rally or decline in the market is usually marked by a few days of wild buying or selling frenzy. What we saw yesterday was more of a steady stream of buys that held the market up nicely. So, what does this mean? Well, this probably mean that the rally has yet to begin. Yesterday's action may set the pace for one of 2 consequences... 1, small and medium investors get encouraged by the action and jump in for the buying frenzy thereby setting the pace for the rally. 2, small and medium investors takes this chance tomorrow to take some early profits in order to cover early losses thereby setting the markets back where it started.

So, this is still a market that can go anywhere... let's still tighten our seat belts for the rough ride ahead as OEX approaches.