Most of you will be thinking to go short ...thinking that the market has topped for this time around. Well, all I can say is "Let the market tell you where it wants to go".
Most of the charts are saying that stocks still have the potential to go higher or sideways for some time. I will be watching the SPY for any signs of sell off to the 85.0 support.
For the financials, I am now looking at JPM chart to grasp the direction of the market going forward. GS and MS should probably be taken aside for any bearishness due to speculation on their ability to repay TARP money.
The treasury secretary is announcing his plan for the bank bailout on Tuesday. So there could be a slight pull back on Monday despite the Stimulus package vote. If JPM can break above the 30.25 resistance, perhaps we could be looking a price target of 32.98 to complete an ABC pattern.
The UPS chart is looking good for further upside, perhaps a retracement to 50.55 or 52.74. Or else this stock should resume its bear trend on Monday.
I was in SLB last Friday and got out on time before it pulled back. Do be cautious when taking trades related to Crude Oil, I think many institutional buyers still pay attention to the fundamentals.
Needless to say, watch BNI..AAPL....GS for a pullback...
My watchlist:
AAPL, GS, JPM, UPS, BNI, UNP
blog comments powered by Disqus