I am looking at first resistance of 1055 on S&P, below 1055 to be honest things just don't look on TA good, I would think that we have seen similar movements in DAX and CAC before a strong move so I am not very worried even if lower levels are tested but I will like that we take that 1055 first and close above 1060, failing to do that would mean that we will certainly like to test 1018 even 1011, however I would think that we will see these levels as 1600 is probed on the composite, if we have come so far why not to test 1600, the numbers from today need to be strong for this momentum to built up, strong numbers would take this market forward I think I would see a good NAPM to set the tone.
I also think we will see a run in SOX PSE DDX IIX soon,their is not harm in initiating long calls in indexes which are really beaten down like the ones I have talked above, this time you will see that even f OEX SPY DJIA stay weak you will see a different kind of move, like we never noticed as we were not invested in smaller stocks the bear market for last three months the smaller RUTs and others will soon move even if big stocks remain under pressure (which I doubt)RUT at 350 is a solid buy, ofcourse abovve 1060 close on two consecutive bais I will be a little more aggressive but right now to test waters we may see some movement. They are at a level where we will see some interest in these stocks. I like ASND COMS CA EFII NN Northern Telecome POWI-- Like always some puts on Bonds would do no harm.. |
