Again as predicted on Nov 25th, the stock did rallied 800 points http://www.freefdawatchlist.com/2011/11/something-to-learn-from-todays-trading.html
Now, DJI has very big resistance at 12232, while in S&P500 it has big resistance at 1263 and 1275.
So today FED, BOE, BOJ, SNB, and BOC announced liquidity swap program. It is a good news for couple of days but it may have some bad effect soon. It is the same program announced on Sept 18th, 2008, after Lehman brother filed bankruptcy on Sept 15th, 2008.
http://www.federalreserve.gov/newsevents/press/monetary/20080918a.htm
There was big sell off in a 2 week time after that announcement.
Also, the other way to look at this matter is something was seriously going to be wrong in a week time and to avoid that they had to announce this program. Inspite of today's rally, Italian bond yield is still at 7.02 while Eur/Usd is at 1.3444 and VIX at 27.80 With almost 500 point rally, Italian bond should have come below 6.50, Eur/Usd should have jumped above 1.37 and VIX should have fallen below 25. This is just a warning sign, something big event is going to happen soon.
There is no need to be bullish or bearish. Take some break and keep cash ready for new investment. I would suggest its time to take profit from this list http://www.freefdawatchlist.com/2011/11/technical-level-hal-amzn-aapl-tna-bac.html
All said, today US economic data came out very positive except the Petroleum data which was very bearish.
ADP showed 230k while expectation was 110k, which means Friday job report will be positive.
Lots of economic data are coming out tomorrow.
Chain store sales data: It will be bullish sign.
Jobless claim (8.30 EST) : 391k or lower is bullish sign, while 395k or higher is bearish sign.
ISM Mfg index (10 EST) : 51.5 or higher is very bullish sign while 50 or lower is very bearish sign.
I would suggest be on the sideline or be a day trader for a while and don't keep your investment overnight in any bullish stock from next week. This is the safest week for bullish stock.
Now, DJI has very big resistance at 12232, while in S&P500 it has big resistance at 1263 and 1275.
So today FED, BOE, BOJ, SNB, and BOC announced liquidity swap program. It is a good news for couple of days but it may have some bad effect soon. It is the same program announced on Sept 18th, 2008, after Lehman brother filed bankruptcy on Sept 15th, 2008.
http://www.federalreserve.gov/newsevents/press/monetary/20080918a.htm
There was big sell off in a 2 week time after that announcement.
Also, the other way to look at this matter is something was seriously going to be wrong in a week time and to avoid that they had to announce this program. Inspite of today's rally, Italian bond yield is still at 7.02 while Eur/Usd is at 1.3444 and VIX at 27.80 With almost 500 point rally, Italian bond should have come below 6.50, Eur/Usd should have jumped above 1.37 and VIX should have fallen below 25. This is just a warning sign, something big event is going to happen soon.
There is no need to be bullish or bearish. Take some break and keep cash ready for new investment. I would suggest its time to take profit from this list http://www.freefdawatchlist.com/2011/11/technical-level-hal-amzn-aapl-tna-bac.html
All said, today US economic data came out very positive except the Petroleum data which was very bearish.
ADP showed 230k while expectation was 110k, which means Friday job report will be positive.
Lots of economic data are coming out tomorrow.
Chain store sales data: It will be bullish sign.
Jobless claim (8.30 EST) : 391k or lower is bullish sign, while 395k or higher is bearish sign.
ISM Mfg index (10 EST) : 51.5 or higher is very bullish sign while 50 or lower is very bearish sign.
I would suggest be on the sideline or be a day trader for a while and don't keep your investment overnight in any bullish stock from next week. This is the safest week for bullish stock.
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