@ 7.15 AM Nasdaq futures are 5 points above fair value...so far....
Nasdaq futures may be pointing to a major reversal......
I will NOT sell into this rally very quickly......
If you are worried that markets may "tank again".....then a covered write after 2 days of rally MAY be a better strategy.....this way you will have two day's of solid GAIN plus "hefty premium from Jan calls"...this way one will be way ahead in long position...even if stock is called away......
For most US traders this strategy will take your gain into next year.....
If the "bull market is in-tact.....then this rally will be a "major rally....well beyond two day's of technical bounce"
If bull case scenario is unfolding then......Barton Biggs call of a "blowout year end rally may come to fruition"
So there is LOT to interpret in this turnaround...and I will keep the BLOG UPDATED as often my "thinking changes"......
My thinking is alway's "dictated by tape".....
There is LOT of technical signs which is making me "extremely optimistic for US markets"..and they are all listed in NO order :
-US $ is surging against every currency except Yen........on NO fed or treasury intervention...My short on Canadian $ is working better than GS call as they covered friday......Canadian $ is down over 1.4% this AM already(huge help to my portfolio).....-1.57 cents against US$.....
-Oil is down...-$1.41 cents
-Gold is down BIG -$20
- US futures did NOT take a cue from slumping Tokyo,Hong Kong,Shanghai,Korea....
-FTSE also was showing resiliency inspite of Asia debacle.......
My post was interrupted by London industrial fire..which was initially taken as "terrorist act"which is all DENIED & confirmed by Scotland yard.....
Futures after initial dip are fighting back to positive level already......
AAPL,RIMM & VMW...are already showing sign of life in pre-pre market @ 7.45 AM....
On the takeover front Cognos(a Canadian software company) is taken over by IBM....
Based on US$ major reversal on "no news or support by treasury" is a major catalyst for US market and confidence builder for foreign investor in US equity......which will pump "trillions in US$ & Equity simultaneously...giving more support to US$ & wall street...as they see a BOTTOM in US$ & US markets"
I am calling "today when US$ came alive on deep deep oversold conditions & improving fundamentals for US economy as we have flushed OUT most of the problems and have been discounted by markets already"
US$ & markets "turns UP predicting future moves or resolution of issues"
Today.... based on above listed FACTS......I am a raging BULL again $$$$$
As I said before ...I NEVER fight the tape...and the US$ TAPE is looking very encouraging $$$$
So ....go for Strong stocks & momentum names ...and make serious money $$$$
Good luck to all...our ANXIETY over the weekend is relieved "big time by US$ tape"
BLOG does not give buy or sell.
Saleem
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