Optimism ahead of long weekend??
Thursday, February 11, 2010 at 07:46PM It’s been a question whether we see a meaningful close over 1070 or 1040. Was today’s close it?. Yes, it might change the tone a bit, but let’s see what tomorrow brings as some selling is a common trend ahead of a long weekend lately. Let's see if we hold. It seems whenever this market goes up, things are generally quiet and nobody even talks about it. Whenever the market takes a pullback, it's always lots of noise out there forecasting even more gloomy days ahead. The easiest way to deal with this in our opinion? We try not to get caught up with our emotion in the latest frenzies.
Today's move didn‘t have 1 catalyst, just a bunch of small ones. Remember, whenever this happens on the downside, we usually reverse. Today action was kind of strange overall and Banks-brokers lagged badly. Surprisingly, the commodity group for once did not trade with the USD as the base material like Gold, Oil led and the underlying stocks joined in. This is evidenced by some of our listed names such as WLT, FCX, CLF etc. Some of the recent earning plays have caught on some of the buying as well. Honestly at this point, we just want to end the week peacefully without any drama and watch some Winter Olympics, but China has their usual important eco' announcements eg. Yuan etc. on the eve of their New Year.
Technically, we have broken the resistance of 1070 and there's a good chance we can test 1090-95+ provided we don't get any major negative headlines. However, we all have come to understanding that this market is anything but logical/rational. Instead, we do have to prepare for any potential downfall as markets are still fragile. Still, trying to think too many steps ahead and figure out all kinds of scenario may just end up driving us nuts. In the meantime, we'll just take one day at a time and one headline at a time until the market moves on from the recent uncertainties.