Well everyone knows I am a bear long term but from the action I have seen last week in the market following the previous two weeks of action I am going out on a limb and saw we will bounce this week. I would not be surprised if we goto the 12700 before we start out decent again and hopefully we might even touch that wonderful 13000 again which would set up a beautiful short opportunity.
Last week friday action on Oil have made be believe the bounce in the market will happen sooner than later and my bet is it will happen within this week into next. We are deeply oversold and much of the selling from the earnings might be abating here for us to turn in a substantial bounce. Now I am no bull as stated I am a bear but you have got to play the bear market rallies when they come.
if we do bounce i will be watching 1426 on the S&P as the highest level of resistance. Yes we are far from there but I think that's the ultimate level to watch as a extreme target if the market starts to turn. Everyone is in the bear camp right now and I think they will get caught in the short covering in the next few days.
Couple of stocks to watch if we start to bounce are BIDU, GS, LEH, RIMM, DIA, FDX. I also wouldn't be surprised if we get some follow thru from the retailers and homebuilders.
Good Luck with this week trading.
Sunday, February 10, 2008
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