-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
Hey Saleem,
ReplyDeleteVERY surprising morning. Hopefully this was the shaking of the tree before the baking of the shorts? :)
Stocktrader
Hi Stocktrader,
ReplyDeleteTAPE 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,
ReplyDeleteI 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,
ReplyDeleteI hope your take is going to pan out.
Close will tells us about what went on today.
Saleem