The market starts a new week having finished last week up almost 12%. A very good week for the bulls. The key is can the bulls keep it up. A pull back would be healthy for the bulls but if we pull back to fast and far, the bears could regain control. I am looking to be enter long this week, if we have a pull back and it looks like we can rally back.
First thing to look at is XLF- XLF is a few points away from heavy resistance which include; its downtrend line from its high in September, overhead supply resistance, if it gets above those it has its 50MA, and it if does that it should be very overbought. So keep an on 8.50 this week on XLF
Which takes us to the S&P. No surprise SPX is almost in the overbought area. If we do climb more, the market should meet heavy resistance between 775 and 780 and then 800 if it gets there.
Let's look at BBBB as a short:
BBBB- I mention this last week but I am still looking at it again. It's nice when you go to log into blackboard and this comes up. Also, BBBB failed to get above the upper part of its triangle and its volume was pathetic on Friday. It is also overbought. This is looking good!
Also on my list for this week is:
AMB-Short
CHK-Short
AAPL-Short
FCX-Bullish on a pullback to the 30's
IYR- Short
JCP-Short
VNO-Short
SGR-Short
UNG-Buy
So my game plan for this week, is to watch. I don't see a lot of good longs at this point. I think the market is a little over extended. I think there are good buys on some pull backs. So I will be watching and updating my scans as the week goes on.
Here is some good reading for you tonight:
AIG stinks!
AIG is telling their secrets!
Water is not free in Chile
Not looking good for oil
China is getting worried about our debt
Wanna trade stimulus money?
What to do with our waste
