Iraq has relented and has opened 68 facilities...finally, there may be no strikes! Hong Kong has closed above 10800 level which I thought as a resistance last week. Chinese market class A world index was up 11% and that is good news for global equity markets; 1130 looks to be a reality. 1020 will probably be taken out today on closing basis. If that happens, the next resistance is corresponding to Dow at 8250; once these levels are taken out we are in virgin territory and the thing can run, and target of 1130 remains the goal. This should be in conjunction with SOXX taking out 320; if that does not happen, then we see a break of 292, and I will look a test of 980 on SPA. We need laggards to take this market up. I would like SOXX to take out 305 today, if that happens I'll be longing SOXX for 320 trade.
Watch out for INTEL, TXN and IBM levels, which I gave earlier on. A break of supports will not be good for the markets. I will then expect visit to 980 instead of break of 1020, but my bias remains on the long side. A good trader has to look over his shoulder and anyone on these higher levels ignoring this cardinal principle will be slaughtered like a silent lamb. We will not give shorts the pleasure of taking us to the slaughterhouses quietly, if the market has to go down, we will go with it! That goes for longs and shorts.
Best of trading! |
