Today, the market tested the low below 10k, and immediately, buyers went in and brought the whole market higher. In the afternoon, shorters and bears came in again to test lows, however, the bulls were back at the final 25 minutes of trading, sending the DOW to its session high.
The chart looks very bullish now.
BEARISH POINTS:
-European sovereign debt crisis
-Portugal would most probably receive its downgrade
-European slow down
-China Monetary tightening
BULLISH POINTS:
-GERMANY approved ECB Bailout 1 Trillion
-US is adding jobs
-There is no proof of economic slowdown in EUROPE as of now, In fact, the PIIGS are showing slight growth, SPAIN has achieved 0.1% GDP growth despite austerity measures.
-EUROPE is poised to grow 3% annually in the next few years
=CHINA is thirsting for commodities
-JAPAN agrees to double IRON ore prices amid economic strength
-ASIA’s economic growth surpasses expectations. Singapore GDP beats estimates.
-EURO Dollar has stabilized at 1.25
-China YUAN would most probably strengthen against the US.
-Market is way oversold
LONG FINANCIALS and CYCLICALS for a continued recovery play.
AA, BAC, FCX, X
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