As predicted on October 3rd, How to play with this volatile market ? Data shows 1500 up side in DJI, Nasdaq up 300, S&P500 up 131 from its bottom by the end of this quarter
DJI did rally for 1440 points, S&P rallied up 131 till now.
Also as predicted the bank stocks have rallied http://www.freefdawatchlist.com/2011/10/uncertainty-of-banks-clear-banking.html
So now what to expect ? My new prediction next week, we will see big sell off again.
So why did the stock rally today ? Wondering ? Confused ? There are two reason. First the wall street try to engulf as many people as possible. Many people shorted the market since it was quiet obvious that there will be no solution on Monday after the EU meeting. But at the last moment the outcome of meeting was reschedule to October 26th.
The second reason was it was option expiration date on October 21st.
Since last 5 year, the thumb rule is if the stock end up high on the expiration date, then there is major pullback in stocks following week and vice versa. Greek Debt issue cannot be solved, its a fairy tale story which EU has come out and once the story end the reality will be horrible. Sooner the problem is solved, better will be for the Global market.
Right now the stock market is running on headlines from Europe which a common investor doesn't get it.
How many papers should one follow ? How come all the stocks rally at a single time within few seconds after the headlines from Europe ? The headline based stock rally is only to fool people. Majority of stock investor only lose money.
The technical level to watch on
DJI: on upside is 11896, 12132, while on downside it can fall 500 points 11444, 11383, 10809
S&P500: on upside is 1260, 1286, while on downside it can fall 1200, 1195, 1155.
VIX is still elevated at 31.96, remember if VIX is above 20 it's not a good time to invest for long term, if it falls below 20 then invest for long term. For time being be a day trader.
Don't play with earning atleast this season, its very unpredictable, stocks like HAL fall badly inspite of good earning , while ALTR which disappointed the market rallied up by 12% and even GS posted loss but it rallied up.
The important dates to remember this week are
Mon Oct 24th: HSBC China PMI, No economic data from US, Earning before market opens: CAT, PCH, LO, RSH Earnings after market close: NFLX, TXN, FTNT
Tue Oct 25th: Consumer confidence (10 EST), Earning before market opens: MMM, AKS, ARMH,CIT, DAL, DB, BP, ODP, BTU, RYN, XRX, WFT, X, UPS Earnings after market close: AMZN, FFIV, PNRA, ESRX,
***Wed Oct 26th: New home sales (10EST), Durable goods (8.30EST), Earning before market opens: AGN, BA, COP, DPS, F, SAP, S Earnings after market close: AFL, AMP, AKAM, COG, V, TQNT, SYMC, IDCC
***Thu Oct 27th: GDP consensus 2.5% ( 8.30 EST), Jobless claim consensus 405K (8.30 EST), Earning before market opens: ABB, AET, BMY, CELG, CL, CRIS, DOW, XOM, GR, LLL, MWW, MCO, OMX, OXY, PG, RTN, TWC, WM Earnings after market close: AMD, BIDU, CROX, ERTS, EXPE,,, GILD, IMGN, LVS, MMI, VPRT, VRSN
***Fri Oct 28th: Personal income (8.30 EST) Earning before market opens: ACI, B, BIIB, CVX, CEG, MRK, Earnings after market close: EEP, EEQ
*** Huge volatility will be seen on this day.
"KEEP CASH IN HAND to take advantage"
Remember if the stocks rally upside then buy calls on DIA, SPY, TNA
If the stocks falls, then buy puts on DIA, SPY, TNA or buy TZA, QID, DXD,
DJI did rally for 1440 points, S&P rallied up 131 till now.
Also as predicted the bank stocks have rallied http://www.freefdawatchlist.com/2011/10/uncertainty-of-banks-clear-banking.html
So now what to expect ? My new prediction next week, we will see big sell off again.
So why did the stock rally today ? Wondering ? Confused ? There are two reason. First the wall street try to engulf as many people as possible. Many people shorted the market since it was quiet obvious that there will be no solution on Monday after the EU meeting. But at the last moment the outcome of meeting was reschedule to October 26th.
The second reason was it was option expiration date on October 21st.
Since last 5 year, the thumb rule is if the stock end up high on the expiration date, then there is major pullback in stocks following week and vice versa. Greek Debt issue cannot be solved, its a fairy tale story which EU has come out and once the story end the reality will be horrible. Sooner the problem is solved, better will be for the Global market.
Right now the stock market is running on headlines from Europe which a common investor doesn't get it.
How many papers should one follow ? How come all the stocks rally at a single time within few seconds after the headlines from Europe ? The headline based stock rally is only to fool people. Majority of stock investor only lose money.
The technical level to watch on
DJI: on upside is 11896, 12132, while on downside it can fall 500 points 11444, 11383, 10809
S&P500: on upside is 1260, 1286, while on downside it can fall 1200, 1195, 1155.
VIX is still elevated at 31.96, remember if VIX is above 20 it's not a good time to invest for long term, if it falls below 20 then invest for long term. For time being be a day trader.
Don't play with earning atleast this season, its very unpredictable, stocks like HAL fall badly inspite of good earning , while ALTR which disappointed the market rallied up by 12% and even GS posted loss but it rallied up.
The important dates to remember this week are
Mon Oct 24th: HSBC China PMI, No economic data from US, Earning before market opens: CAT, PCH, LO, RSH Earnings after market close: NFLX, TXN, FTNT
Tue Oct 25th: Consumer confidence (10 EST), Earning before market opens: MMM, AKS, ARMH,CIT, DAL, DB, BP, ODP, BTU, RYN, XRX, WFT, X, UPS Earnings after market close: AMZN, FFIV, PNRA, ESRX,
***Wed Oct 26th: New home sales (10EST), Durable goods (8.30EST), Earning before market opens: AGN, BA, COP, DPS, F, SAP, S Earnings after market close: AFL, AMP, AKAM, COG, V, TQNT, SYMC, IDCC
***Thu Oct 27th: GDP consensus 2.5% ( 8.30 EST), Jobless claim consensus 405K (8.30 EST), Earning before market opens: ABB, AET, BMY, CELG, CL, CRIS, DOW, XOM, GR, LLL, MWW, MCO, OMX, OXY, PG, RTN, TWC, WM Earnings after market close: AMD, BIDU, CROX, ERTS, EXPE,,, GILD, IMGN, LVS, MMI, VPRT, VRSN
***Fri Oct 28th: Personal income (8.30 EST) Earning before market opens: ACI, B, BIIB, CVX, CEG, MRK, Earnings after market close: EEP, EEQ
*** Huge volatility will be seen on this day.
"KEEP CASH IN HAND to take advantage"
Remember if the stocks rally upside then buy calls on DIA, SPY, TNA
If the stocks falls, then buy puts on DIA, SPY, TNA or buy TZA, QID, DXD,
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