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Wednesday, March 11, 2009

Markets , where to next?

So the market seems to be digesting the huge rally from yesterday. It has not given up the gains . After a huge rally when the markets do not rally more or do not fall again , then that's a very good thing.
It shows the rally has staying power. Also the high-beat ( high volatility ) stocks are doing good.
In all it looks like it wants to rally more. The low Put/call ratio is a concern but lets not dismiss the rally altogether.
Anything can happen by 4:00 pm, market close, but if it does not sell-off then count this as a good day for the bulls.
Most traders/analysts are not yet ready to call this a bottom , but there are a few who are.
Doug Kass from thestreet.com is calling this a "generational" bottom, click here . Those are big word and he , it seems, was bearish 2 years ago. We shall see.
In any case the rally can hold a few weeks. After that we can think if its a something more than a bear-market rally.

So which stocks to buy? I am sticking with those having good charts.
I have WFMI, QCOM , USO and RIMM calls.
I am looking at MS , AAPL, AMZN etc. I have a few AMZN puts which are under water now , if this rally is going further then I will get rid of them.

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