Indices closed UP 3.98% to 5.29%......NICE !!!!!

Ben Bernanke, the sole decision maker who does give a damn as to what is happening to US economy...made a crucial decision to hold interest rate lower till middle of 2013.This gave clarity to everyone in dealing with their finances.This also gave a floor to US economy, which was being lamented as a basket case due to political grandstanding / inaction.

Market celebrated Fed decision by closing @ best level of the day.Low today was 1101.54 & we closed @ 1172.53.

RSI in S&P 500 closed @ 31.68

Internals were as listed below :

UP volume led by 34.31 to 1 in NYSE & 24.02 to 1 in Nasdaq

Advancing stocks led by 11.59 to 1 in NYSE & 4.82 to 1 in Nasdaq

New 52 wk lows were 680 in NYSE & 443 in Nasdaq

VIX tumbled 26.96% @ 35.06...still too high & should have fallen more ?

There is a big sigh of relief in traders mind today, but we are still in the same environment which caused this tumble. It is a smart idea to keep booking profit as long as market allows.As i have pointed out that 1260 area is resistance & we may not make it there.So stay in your game of buying strategically & booking profit.

The question may be what is strategic buying ?

Today i bought CNQ which had tumbled near lows because of Oil trading below $80, so i took a position hoping that Oil cannot stay below $80 for too long..a strategic buying.

I also bought AUY close to 52 wk high, as i believe that world economic problems will not go away anytime soon & Gold may keep climbing to new highs. As we all know that miners have not participated in Gold moving UP, but AUY has made new 52 wk high & its ER was superb with no excuses & guidance strong.....a strategic buying.

AH ER were greeted as follows :

CREE + 9.19%

SPWRA <2.68%>

AH Futures Mixed

AH Asian Markets UP

AH Oil UP @ $81.01..Oil closed in regular trading @ $79.30

AH Gold UP @ $1755.80...Gold closed in regular trading @ $1743

BLOG does NOT give buy or sell.

Saleem