A Week of Bull

bull marketWell, markets opened up very strong on Monday, led by financials, as we saw the Dow close up over 180 points. Interesting enough, after just one day of rather strong buying, many are already believing this is the beginning of the next gap up. Many bulls believed that a significant pull back was needed to build a base for the next buying wind, and that the past two-three weeks was just that. Last week especially, seemed to favor only the bears, but this week it's the bulls that have the head start.

Although I firmly stand as a bear in our current economy, I do consider a new buying leg a possibility, a small one, but a possibility. As I have said in many of the posts, earnings is the key to the next market direction. Today, everyone showed that they are banking on very strong profits from banks, hence the big gains from financials today. Goldman Sachs reports tomorrow, which is the clean up batter for banks. Goldman has a very good possibility of hitting earnings out of the park, which in turn could spark yet another rally for banks. However, I am not so sure other banks are nearly as well off as GS.

If we indeed see another blow-up in financials tomorrow, I will be purchasing several December ending FAS put contracts. Many will feel that the "bar" will be set for financials by Goldman's report, however, it will be more like the ceiling. Goldman is their home run hitter, and I don't feel it will get any better than their report. I think the honeymoon for financials will be very short lived.

Also, tomorrow there are several big companies reporting earnings in the morning, that I think will set the tone for trading at least the rest of this week, if not the quarter. If we see some big crushing of earnings tomorrow, I believe we will find ourselves back in a tug of war, or even worse, a bit of a rally. At any rate, I don't expect these things to last and I definitely do not feel that we are out of the woods in regards to this recession. We will learn a lot from tomorrows trading and I will be most likely making numerous trades in my Zecco.com account.. I will keep you posted, especially on the premium podcast (subscribe here). Happy Trading.


  1. Anonymous Says:

    Chanel's bank quilted clothing contains a "secret" quilting sample sewn hemes replica uk along at the in to keep fabric formidable. The following fabric is required to get attire plus extras equally. A person's pc instance may be found in a great many several models plus colorations. If shopping for pc men’s baggage you require to take into consideration its design and style. People make it easier to generate a favourable opinion against your peers. Frequently, people make it easier to continue to keep all if you wish plus all set to apply. The main reason this is certainly hence preferred is really because not one person can realize your desire chanel replica sale to make sure you're taking your pc and they are generally as well pretty cool and trendy plus urban wanting. Although that you are upon who would like all inside of a commonly used, unisex, all-occasion dark colored colouring, you'll want to say that not wearing running shoes may get somber plus unexciting before long. Foam is definitely first of all consider if buying innovative new laptop bag. A huge webbed wrist strap bring design and style plus gucci replica sale help you carry serious plenty in no time. Briefcase pc instance is a fantastic preference to get business enterprise govt and gentlemen who seem to go considerably. All these scenarios come from set and they are generally long-lasting plus formidable. In the major design a long time, a Chanel couple of. second 55 handbags miraculously have not evolved a great deal. Compared with alternative design style and design buildings who definitely have re-structured its travelling bag kinds so that you can please a short lived fancy involves with design fads, a gucci replica Timeless Chanel couple of. second 55 includes banded it is really flooring. The fact is, around 2005Psychology Reports, the style dwelling aplauded by way of re-releasing a timeless equally as that it was.