Wednesday, March 7, 2012

Nice Recovery

A nice bullish response to yesterday's action. The Dow, S&P500 and Russell2000 acted well. Tech did not so good, mainly thanks to AAPL, which responded negative after the announcement regarding it's new iPad 3.

The question that should be asked is the following. Is today's action only a minor reaction to yesterday's losses or was today the dip you should've bought?

5m-chart SPY:

Daily charts DIA, SPY, QQQ and IWM:

Metals: silver was up 1.5%, outperforming gold and copper.
Oil: there's no stopping oil it seems. The 105-level held as support and oil looks more bullish than anything else out there (compared with index-futures and other commodities that is).
The euro was up, but not much. Not sure that this is the end of the suffering for this currency.

I went long AIS @2.75 with a stop at 2.63 for a swing trade. Looking for the 3-dollar target.
The chart looks good and today the stock broke out of a 4-week triangle with reasonably good volume. It looks ready for prime time, but may need a helping hand from Mr Market.

Articles for tonight:
Are Financials Setting Up for a Relative Breakout?
The Fed is Watching Every Stock Market Tick, Apparently
Trade to improve your portfolio
The Trader's Emergency Survival Plan

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