Once again, the market reminded us to expect the unexpected. When the Russia and Ukraine conflict flared up last Friday, everyone was expecting the market to sell off big time when trading resume this week.
When the US market open for trading on Monday, traders were expecting a beginning of a prolong sell off in the market. And true to the point, the market opened down and the DJIA dropped more than 200 points. Then the unexpected happen, the market started to firm up and turned upward. Granted the market still ended Monday’s trading in the red, but not as big of a loss as many traders were expecting. And today, the market went up and recovered all its losses from yesterday plus more. The SP500 and the Russell 2000 put in another new all time high, while the Nasdaq once again put in another new multi-year high. Although the DJIA still have not put in a new all time high, but it is getting near its previous all time high and it is only a matter of time that the DJIA will put in a new all time high.
There are many naysayers keep on reminding those care to listen that this rally cannot be sustained since the trading volume is light. Although that is true about the trading volume, but as long as liquidity is there and the bids & offers are moving up, this market will continue to move higher until everyone that want to buy have bought. Until then, continue to manage your risks and protect your profits.
In the following video, a review of the market indices and an updated assessment of the outlook for these stocks: MS, GS, BAC, MU, HIMX, BBRY, JCP, AMD, YHOO & HPQ.
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Disclosure: Long BAC, BBRY, AMD, YHOO & HPQ.
