Markets continued spinning all day Friday at Supports and bulls were stressed all day long. However, in the last 2 hours some serious buying happened and most stocks rallied. Apple and RIMM both rallied nearly $4.50 each, all Indexes seem like well supported into the weekend and G7 meeting during this weekend may help further this Rally.
Up coming week is Option expiry week and there could be usual fireworks around. We will be watching Resistances here on with bated breadth as this Rally could end very abruptly.
Markets are overall very stressed as Credit crisis is simply getting worse by the day, Consumers are exhausted, Credit Spreads are getting really dangerous, and Unemployment is a very serious concern.
Trying trade BEAR RALLY is like catching a Falling knife and you can imagine and visualise the consequences of that exercise. This a time to be very aware of market internals and watch them closely. Markets could turn on a dime any moment.
Coal stocks have become new Gold of the times and most Coal stocks have rallied almost like 40 to 50% in the past couple of weeks. There should be a pull back very soon but worth keeping an eye on all of them.
We have taken a position in one of them and FDG is our 15th trade of 2008 Project M.
Weekend before Option expiry is always a working weekend besides family and fun.
Have a great time.
Harry
