-Spain gets $125 billion for banks, which was @ the high end of expectations.
-Chinese Data did NOT print any new lows in economic activity. Chinese stat has the earmark of a "trough"...
-Puts in S&P 500 "extremely high"
-Weekly & Monthly Option Expiry this Friday
All of the above should create " the-biggest RUNUP" in a while.....
Shorts are in deep TRAUMA & will cover @ open & go long.....
Cannot recall except @ QE1, that market has so many positive FIREWORKS....
With Spain out of "crisis headlines", shorts are stuck with no "panic news flow to CNBC"
S&P 500 should take out 50 DMA @ 1356.92 by Tuesday of this week....
By Friday, there is a very good chance of looking @ 1400 area......
SO...a 75 S&P 500 points or 5.7% move in a week , could be the-fastest sprint......
YES...it is OK to be @ above average exposure on Monday.......
Again, biggest gains will be in strong stocks........
This week may give "confidence to sideline money" who are hiding in US Treasury / Bonds.
All I can say "fasten your seat belt".....we are gaining altitude in a hurry.
BLOG does NOT give buy or sell.
Saleem
4 comments:
Hey Saleem,
VERY surprising morning. Hopefully this was the shaking of the tree before the baking of the shorts? :)
Stocktrader
Hi Stocktrader,
TAPE is a clear indication of who is controlling this market now....
Shorts were caught with Spain deal...but they shorted more @ open........
Saleem
Hey Saleem,
I don't mind crashing opens. In my experience, that leads to buying later and the whole day ends up looking pretty decent/good but with many weak hands having sold, setting up the market for stronger moves ahead.
Stocktrader
HI stocktrader,
I hope your take is going to pan out.
Close will tells us about what went on today.
Saleem
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