Continued up

After the inverted hammer, we went on flat. I think the chart has spoken, we are still going up. This week has a good Friday, so I think market will be still optimistic and continue up.

Stocks Erase Gains After Trichet Comments

Just when I thought DOW was flying when there's good earnings reports from companies and good news along with Bernanke's speech, it ended up flat. It was a really nice rally of 100 over pts until at the end DOW just went on a dive and splat! This formed an inverted hammer, a signal of reversal or consolidation.

What Trichet commented?

Trichet told a French TV network that Greece having to go to the IMF for aid was a "very, very bad" thing and that the European Union isn't doing enough.

Those comments sent the dollar soaring against the euro and commodity prices lower. Material and energy stocks were the day's worst performers.

Continuation

Well, Tuesday broke the resistance and provided a much upsurge of the bull. The next target will be 11,000 pts. Tonight might stall looking at the futures right now. HSI and STI are going negative as more are taking profits. Are people anticipating a downside soon?

Consolidation or continuation?

Lots of upgrades last night, pharmaceuticals stocks were the top runners.

End of upside

Opps seems like there is no more upside. A down tonight will signal end of upside.

8th Session up

No 8th candle reversal in sight, momentum will continue to go up for the next few sessions.

Dow Extends Win Streak for Lucky 7th Day

Well the Fed decided to keep it's rates unchanged and the market continued it's rally and broke through my first reported resistance. As I said in one of the last entry, we are towards the January high. Dow has already gained for 7 days. Tonight will it gain again? Or will result in the 8th candle reversal? What's driving the rally now? I think it's the currency. It will be nice if DOW goes to break the January highs and find support on it during the next correction.

Economic events to look out for

US market will be waiting for the FMOC rate decision.

Economic Events for week Monday 15 to Friday 19 March 2010
Monday:
08:30 am Empire Manufacturing Survey
09:00 am Net Long-Term TIC Flows
09:15 am Capacity Utilization
09:15 am Industrial Production
Tuesday:
08:30 am Building Permits
08:30 am Export Prices ex-ag.
08:30 am Housing Starts
08:30 am Import Prices ex-oil
14:15 pm FOMC Rate Decision
Wednesday:
08:30 am Core PPI
08:30 am PPI
10:30 am Crude Inventories
Thursday:
08:30 am Core CPI
08:30 am CPI
08:30 am Current Account Balance
08:30 am Initial Claims
08:30 am Continuing Claims
10:00 am Leading Indicators
10:00 am Philadelphia Fed
10:30 am Natural Gas Inventories
Friday:
None

S&P Closes at 17-Month High Above 1,150

Last night was a struggling night as stocks weaved in and out of positive and negative territory before having a last minute gain.

Stocks struggled to hold gains for any length of time today as investors were disappointed in the latest jobless-claims report. Banks rebounded from a midmorning dip amid signs that financial reform may get stuck in gridlock on Capitol Hill. Bailout stocks Citigroup and AIG continued to push higher.

Initial jobless claims fell by 6,000 last week; economists had expected claims to drop by 8,000.

Jobless rates are still not showing any improvement which caused the DOW to be down. It was only saved by bank rally.

Right now it has hit the resistance. If it breaks that resistance, then we might go to the January high.

S&P500 closes at the 17-month high. Now it must find support at 1,147.5 to be able to move higher.

Stocks end higher

After a few days of rally, seems like we hit a speed bump. DOW now seems to be hitting the resistance and coming back down. Well, we might be in for another consolidation again. A small drop in the DOW should make the DOW healthy and then break the resistance.

Stocks Gain 2.3% for Week

DOW gained! Saved by the the report on Friday that job losses for February wasn't as bad as expected.

The consolidation I reported last entry ended with an upside so there could be more.

However trading volumes remained light as many are still cautious.

Oh one interesting observation: Obama's speech this year always seems to kill a rally. (we shall see does it happen again on Wednesday....)

Next week's market movers:

MONDAY: NABE conference; McDonald's Feb. sales; Fed's Warsh speaks; Earnings from H&R Block
TUESDAY: NABE conference; Anniversary of market's March lows; Fed's Evans speaks; 3-year Treasury auction
WEDNESDAY: Obama health-care speech; weekly mortgage apps; wholesale trade; state unemployment rates; Google hearing; weekly crude inventories; 10-year auction; earnings from American-Eagle Outfitters
THURSDAY: $2B California bond sale; international trade; weekly jobless claims; 30-year auction; earnings from Nat Semi, Aeropostale
FRIDAY: Gov'ts retail-sales report; consumer sentiment; business inventories; earnings from Ann Taylor

Consolidation?

Seems to me is a consolidation now slowly moving down. My stand will be the downside until MACD starts to turn up again. What a rollercoster ride!

Update: Judging from today, Things are getting bullish for March. The only thing is the MACD seems to be turning bearish. If the consolidation holds for the next 2 weeks and a breakout, we might get a new bull :)