Trading Plan for Friday (July 31, 2009)

Yesterday was more like a gap up more than a rally. When that happened, I knew right away that trading the indexes will be like committing suicide. So high and low I was digging for suitable stocks to buy....but yer know I didn't like the setup for most except for the laggers like AMZN, NKE, XOM.

Even GS and OIH sucks! KO...grrr....made an outright U turn. Just wished I could just focus on one...

The market may have broken the record but I doubt many normal traders made big money in the big gap up.

The SPX trading plan moving forward looks more straightforward now. The dangerous part is if we break 973 and fall, so I will most likely try to search for stocks that pulls back.

On the fundamental side, it all depends on how many percent fund managers are invested and how much returns will stocks return to the fund. For instance, if companies can't afford to pay higher dividends then what fundamental reason is there to justify stock valuations at this level...?


I see that AMZN is free to go, however it all depends on the MM. It may chop around abit, we shall see.