Monday, March 23, 2009

Here We Go

Today's toxic assets plan announced from the US Treasury got the market flying. NYSE up/down volume ratio was 40 to 1, and the advance/decline was 10 to 1. In the Nasdaq the up/down volume was almost 16 to 1 with the advance/decline 5 to 1. The DJI closed at 7775.86 with a gain of 497.48, while the Nasdaq 100 closed at 1259.81, a gain of 72.63 and the SP500 closed at 822.92, up 54.38 points. This rally will lure more of the sidelined money into the market, and this will provide the fuel for further upside. So far, the market appears to be playing out one of the scenario I have put forth in my last Friday post.

Here are the updated charts:







Although the market have more room to climb higher, but be mindful it is still in a bear market. I'm selectively long and will switch out quickly if this rally comes to an end. One should never be over extended with longs in a bear market rally, as it can terminate and reverse abruptly. So be selective.


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