Stock Investment Blog|Journal of Stock Investments|Portfolio

Feb 07

Stock Market Updates

Tomorrow is Rally Day For Etrade!

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I predicted on another board this morning that we would see the market close green today. Been at this too long and all my technical analysis indicated this action today.

And unless something unexpected occurs tomorrow, we are going to see the Market rally on one or all of the following: “Expected Further Rate Cuts”, “Moderating Inflation”, “Stable Job Claims Report”, “Lower Energy Prices Give Consumers Relief”, “Slow Growth Not Recession”, “Over Sold Market Rebounds”.

Some of the psychology that pummeled the market has had it’s catharsis. The “sellers” have all panicked and they are basically done and in cash. The trendlines, albeit the lowest ones, held.

Technically the market is healthy. It is a correction. The fundamental dichotomy is that the market sold off because “Housing Is Leading Us Into A Recession” and the “Banks and Financials Worse To Come?”, but Home Builder stocks are up 80%-100% and Finacials are up 60%-80% from their lows and have continued to advance in this brutal sell-off!

What does this say about the Market’s schizophrenia?

And with the simple fact that Mortgage Loan Applications for Housing soared to their highest level last week since March 26, 2004 and Home Refinancing, which has been at record levels for three weeks was slightly down last week, but still strong as well? Banks and Mortgage company’s are having Christmas in February! People are flooding them with dollars…
http://www.mortgagebankers.org/NewsandMe…

The Rally on Friday will set the Market up next week for a solid gain…and will be a technical signal that it’s a “Healthy Market” that stages a Rally to close out the week.

Many things can happen tomorrow to alter some of the timing of the Rally forecast, however, the investment thesis for a moderate growth economy in the first half is substantiated by the facts and the technicals. And beginning tomorrow or next week we will see a rebound off the lows.

So my attitude is double up, & accumulate, accumulate, accumulate because you want to buy low and sell high! And this is the low!

Of course you need to take this analysis as strictly my own opinion and do your own due diligence as I am just an old hand at this and not a licensed investment advisor. GLTA!