DOW started off on a high note. However traders started shorting the market. Investors also sold off in the morning. However we could see demand at 10540.
CNBC’s PISANI thinks that the sentiment is bullish. The DOW could only whipsaw around this 10560 region. There is no ECONOMIC data in this early week. Investors risk appetite has not gone up yet as seen by the stagnant stocks.
The DOW gave us a doji today. This shows complete indecision. Shorting activities by traders, buying activities by investors, but no buying activities by RISK lovers aka traders. Traders are still afraid to bring the market to new highs as they fear that investors would sell off such rallies.
We have to see the global recovery action. Today, RUSSAL aluminum has secured a large deal and aims to secure more aluminum deals in China. They predict that CHINA’s aluminum demand, currently at 10kg, will increase by 20% to 12kg/capita. Compare this with the western countries consumption of 25kg/capita and India’s at 1.5kg/capita. There is still much growth.
Global recovery is taking place faster than US recovery. ASIAN Mcdonald’s sale rose by 10% in ASIA, allowing Mcdonalds’ $MCD stock to rally 2.28%.
The recovery play is still going on. LONG materials, industrials and financials.
$AA, $BAC, $CENX, $WFC, $JPM
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