Wk9: Market Forecast

23 Feb

Get out your long playbook.
When everyone thinks sell, it’s time to buy!

The market prices in the FUTURE speculation of the economy so we believe that any sign of a positive 2010 or 2011 will produce a huge rally over the months to come.

In the week ahead make note of these important economic announcements.
· Thurs: Durable Goods 8:30 ET
· Fri: GDP 8:30 ET

We also have Consumer Confidence on Tuesday, Existing Home Sales Wednesday, New Home Sales Thursday, and Consumer Sentiment Friday.

While we are primarily short term swing traders, it is important to keep in mind the bigger picture. We are at a major support level across the indices. This could be an extremely low risk entry point for the stronger companies across the market.

Looking at some of the majors in the NASDAQ 100, AAPL, AMZN, FSLR, GOOG, and RIMM, 4/5 were up on Friday and big money is stepping in giving them some lift. While we can’t call the bottom before it occurs, historically this is an area where a bottom has occurred, so we are looking for signs of accumulation by big money at these levels.

A rally is evident. However there will be pullbacks and bear moves along the way. Stick to YOUR trading beliefs and trade YOUR plan, there will always be another trade out there so keep your risk managed today so you can trade tomorrow.

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