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Tuesday, September 27, 2011

Stock market is in Bullish Territory Set to continues rally

As predicted the market did crash and now its recovery time. The stock market did followed the 2008 pattern, Gold and silver also got sold as it happened during 2008 crisis Silver being worst affected as shown in the chart for 2008.
gld bearish chart

The worst for this month is over. S&P500 bottomed out on September 22nd. There will be resistance at 1114 to downside. The upperside key level is 1220 and then 1260. Europe won't allow Greece to fall apart and cause domino effect as it happened in 2008. The stock is set to rally considering from hereon unless something goes terribly wrong in Germany on Thrusday. The GDP is already set to 1.2 which is set to lowest level which is ridiculous but the wall street is accept any positive data. The next pullback is expected in mid October and then the worst will be in November unless Washington do it right this time. Since holiday season will kick off, the stock will continue to rally till march 2nd week.

The volatility in this market is at highest level. Don't panic on day to day basis. Considering long term prospect, you can buy ERX, DIA and hold it for 1 year with 100% return. Buy ETF for safety instead of individual stock.
Remember you can make money in up or down market.
If the market is rallying: DIA, SPY, ERX , XLF, FAS, TNA If the market is selling off: TZA, VXX, GLD, FAZ. Short or put option in DIA, SPY, ERX, XLF Move your position as per the market, don't stick to any stocks for emotion. This is how to play with this market.




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