As thought by me, the PPT (plunge protection team) aka fed did tinker with the market by doing an interim rate cut. What did the market do? It just yawned and went down. This is what happens when you use too much of a good medicine, one stops responding to the treatment.
Now we are entering the options expiration manipulation phase that would last until the Thursday of next week. I would not read too much in to the price action until expiration is over. The market has a tendency to rally in this period and the rally will be fast and furious. That being said I still think that we will see S&P 935 and Dow below 9000 sooner rather than later. The expiration shenanigans may delay it until the post expiration week.
A short trade idea, GOOG it seems is flirting with disaster. It is expected to announce earnings next Thursday. The price action suggests that the smart money is bailing out from the stock big time. I think it goes to 310 soon. A break of 300 and it goes to 270 in a hurry.
A long trade idea, if the market does rally during the expiration week, RIMM looks all set to fly. It can go to 77-78 real fast.
2 comments:
hey vinaydh
nice blog---
You should install Disqus, or at least register with Disqus, so when I click on your Icon, it'll take me here to your blog.
Do you do individual stock picks too?
In the meantime I'll bookmark this site and check in when I have free time.
Thanks zstock7. Yeah I do individual stocks too. If you remember I was the one who called for RIMM going to 55-60 when it was at 70.
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