Today’s unemployment claims shows that the job market is still the same as it was 4 months back. We are still in a poor job market but with some slight hints of improvement in the months ahead.
The existing home sales was better than expected but still fail in comparison to the earlier months. The reading is below 5mln annualized (that’s bad), noting that it has been above 5.5mln in the past 6 months.
Tomorrow we will be expecting more numbers ---- the new home sales. If that is bad as well, then the market would most probably drop again.
The DOW has risen from 9930 to 10700 in only 15 trading days. A spectacular feat, and it is screaming over bought. However, we must also observe the FEB to MAY crazy buying spree. A huge pump that resulted in the flash crash.
Some traders are afraid that the low volume that accompanied this latest pumping rally might cause another flash crash. However, the new regulation should help to prevent a major flash crash. I doubt any flash crash would happen. The market is crazily optimistic. And it should be for now. Signs are everywhere that the global recovery is taking pace at a good and healthy pace led by China. Copper prices have been going up and its inventory has gone down by a great deal.
The technical analysis shows that there is no support until 10500, and 10350.
I will be buying stocks at that level.
Stocks that I am watching are
BAC - $12.8
WFC - $24
FCX - $75
LVS -$28
MGM - $9.5
CLF - $57
C- $3.75
X - $40
MORE TRADING ANALYSIS on particular stocks will be posted over the weekend.
Keep it simple, not too many stocks to watch.
TRADER TOLITS calls
HOLD GPS, LEN
SHORT Q
BUY BAC @ $13.13
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Feel free to recommend more trades.
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