There were two news after hours, one was S&P downgrading banks rating and second was EU ministers agreed on expansion of EFSF. I think both this news are positive. First of all everyone new about this downgrade.Now the uncertainty of bank rating is now cleared it is good news. While EU are doing something, while the news which comes out look same again and again.
There are few positive things to consider from today rally, the stocks didn't sell off after yesterday rally. In last two days the stocks have rallied almost 400 points before pulling back in last 15 minute. Eur/Usd is still trading above 1.33 which is bullish sign. If it falls under 1.33 or lower then its time to take some profit out.
Also VIX is at 30.64 another bullish sign.
Stocks likely to open low are : OVTI, PRS
Stocks likely to open high are : AEA, LLEN, NLST
Lots of US economic data is coming out tomorrow, I have added only important one here
Challenger job cut (7.30 EST) 42k or lower is bullish sign while 50k or higher is bearish sign.
ADP employment report (8.15 EST) 110k or lower is bearish sign while 110k or higher is very bullish sign.
Chicago PMI (9.45 EST) 59 or higher is bullish sign, 55 or lower is bearish sign.
EIA petroleum status (10.30 EST) inventory built up is bearish sign while negative inventory will be bullish sign.
Beige book (14 EST)
Farm price at (15EST) very important for POT, MOS, CF, CAT, DE
I still think inspite of some bad news, tomorrow the stocks will open higher and likely to continue higher with small pull back and end up flat or higher. The banks might be weaker.
I am optimistic about banks stock at their current level. It involves risk, but "High risk means high reward"
BAC at 5.08
MS @ 13.31
GS @ 88.70
JPM @ 28.56
BCS @10.52
WFC @ 24.08
DB @ 35.54
FAS @ 52.71 (Safest out of all)
LYG @ 1.42
IRE @ 4.53
STT @ 36.69 (Only stock not downgraded by S&P rating today.
There are few positive things to consider from today rally, the stocks didn't sell off after yesterday rally. In last two days the stocks have rallied almost 400 points before pulling back in last 15 minute. Eur/Usd is still trading above 1.33 which is bullish sign. If it falls under 1.33 or lower then its time to take some profit out.
Also VIX is at 30.64 another bullish sign.
Stocks likely to open low are : OVTI, PRS
Stocks likely to open high are : AEA, LLEN, NLST
Lots of US economic data is coming out tomorrow, I have added only important one here
Challenger job cut (7.30 EST) 42k or lower is bullish sign while 50k or higher is bearish sign.
ADP employment report (8.15 EST) 110k or lower is bearish sign while 110k or higher is very bullish sign.
Chicago PMI (9.45 EST) 59 or higher is bullish sign, 55 or lower is bearish sign.
EIA petroleum status (10.30 EST) inventory built up is bearish sign while negative inventory will be bullish sign.
Beige book (14 EST)
Farm price at (15EST) very important for POT, MOS, CF, CAT, DE
I still think inspite of some bad news, tomorrow the stocks will open higher and likely to continue higher with small pull back and end up flat or higher. The banks might be weaker.
I am optimistic about banks stock at their current level. It involves risk, but "High risk means high reward"
BAC at 5.08
MS @ 13.31
GS @ 88.70
JPM @ 28.56
BCS @10.52
WFC @ 24.08
DB @ 35.54
FAS @ 52.71 (Safest out of all)
LYG @ 1.42
IRE @ 4.53
STT @ 36.69 (Only stock not downgraded by S&P rating today.
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