Todays action was clearly bullish. This morning the market opened with a respectable gain until financials such as Lehman and Goldman really started taking off. As these rose, the broad market followed strongly. Any dips were bought into and the market closed near the highs of the day.
There was a great opportunity to get long today besides the morning. Right after the fed announcement there was a nice little headfake selloff that provided a good bottom to trade off of. The market then rallied strongly from there into the close.
I think the market still has upside from here. The investment banks are becoming much less of a worry as the junk (Bear) is finally getting thrown out and the prime players (Goldman, Lehman) can now distinguish themselves.
Google looks like it has the potential for a bit of a snap back rally. The chart shows a quick double bottom that looks tradeable. JP Morgan might still have some juice here as well. It's one of the healthiest banks out there and showed it by picking up Bear Stearns on the cheap. Denis Gartman also publicized just the other day that his fund started buying it. Plus, it didn't move near as much as the other banks today.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment