DJIM #18 2008

Despite the undeniable strength of the indices, the market,  some Bears are clinging on almost new daily interpretation of why this can't be happening.   The latest was evoked by what some, even some Bulls, may not have liked and that is how the markets pared their gains on Friday.  A shooting star on the SPZ seems to have given some Bears a glimmer of hope once again.   Oh, Please!.  How about the confirmed the DOW signal as the SPZ broke 1400 confirming the reversal in the DOW?.    Sure, the Payrolls shrank to 20k against the streets 75k consensus and indicates the recession is not really an imploding economic recession.   But, come on.   Lets' be realistic after Thursday's march up, are you not surprised profit taking would come in early even if this number was excellent for the Bulls.   We noted before Fridays open our view on the Payroll number, even if we got a bad number.    The shaving of gains Friday is irrelevant to us and if we get a further retracement Monday, we'd still be approaching this market with the same strategy and that is buy the dips.    So, after shaving the final tallies to +.4% DJIA, .3% SPZ and a small loss on NASD on Friday, the market still delivered an excellent week and that is all that matters!.    The FED has done everything, everything possible including getting into the act Friday by announcing further steps to stomp out the global credit crunch with more dollars and co-operation from the ECB/Swiss National Bank.    Simply, the FED is showing they are on the ball and even as the market goes up and fear is diminished, they are still showing they are right there to watch our backs!.     At this point the Bears could only be pulling at straws as too many things have gone against them and there is all the rate cutting consequences, the tax rebate checks looking them in the face in the coming months.    It's not a pretty picture.    Oh yeah and in the short term, it's good ole May trading time where it will be hard to draw up any volume to do any real damage heading into the summer.

Okay so onto this week.....last week notably, we had the techs lead the NASD to the market's leading index and the emerging markets in China and Brazil show some spunk.    One is showing signs of recovery , while the other is making new highs!.     As much as we have loved the Commodity trade in '08, we are enthusiastic to have the above 3 markets giving us more to play with!!.   As this plays out, our shadowlist will be generating a nice turnover or just grow into a shadowlist #2.   To keep your list tuned, follow the Alert-comments and Journal mentions to add and deleting should be obvious as you remove stale plays or sectors.    We don't need to constantly update, it should be obvious when you should remove themes like Gold/ stocks from the list as in the past few weeks to make room for new plays.   A few things regarding those emerging markets, we are not gonna go overboard now and think every stock in its sector will be going up as other times have allowed..eg last years China run.    Until, we have confirmation, we'll only know when we see it, we will be either very selective or just play the EWZ and FXI.   On a daily basis, we still expect the commodity plays here to give best bang for the buck from day to day.   You'd have to really wait a while on some individual Brazil/China stocks to get the % gains we all witness on either a shipper..coal on any given day.   With this mind and not to take away from what we know works, keeping to the ETF's in emerging markets is probably best at this point.

Anyways...the shadowlist is updated, a few notable charts and a list of potential earnings calls to watch this week.  Let's get it on!