Sunday, April 27, 2008

Early this week...

FOMC Tuesday. Normally trend is HIGHER into the meeting. We're right dead smack at 1400 on S & P resistence so it'll be interesting. I think we have to lean higher into FOMC. I'm leaning to the Fed doing NOTHING. If they do, I think it sparks a rally. I think the read on that would be that the all clear signal has happened. I think thats a mistake, but that's ok, it don't matter what I think past the day. And, most people feel that the Fed will cut another 25 bp. I won't be surprised whatsoever, just think good shot they don't.

Fed needs to be very careful here. If the market rallies hard, which I think there's a decent shot of, then they are probably setting the market up for a serious fall later on. Election years, though, are very volatile often and obviously the incumbent party would love to be able to say "you see, we fixed the economy!".

I obviously feel that absurd, but again, thats one of those predictions I hope I'm wrong about as I would love nothing more than for the market to go to 15,000 this year. That'd be sweet! Just creates a better trading environment, thank ya very much!

Interesting/volatile earnings this week upcoming;

V, MA, FSLR, AKAM, and others.

FSLR should move $30 or $50 either way off earnings. Remember last quarter? If I recall it went about $70 higher off earnings. They should blow out again, so what then happens? Is it priced in, or does it zoom another $70? Hmm, when you guessing that means you just watch and enjoy the ride!

Meanwhile, I think fading the open Monday should be ok and we'll discuss the FOMC Monday night, stay tuned!

RULE!

*MANY MANY want to take the Options seminar, and the June LIVE trading seminar. I will be sending an alert on BOTH early this week. If you want the info, please email me ASAP at -

waxie@trendfund.com

See ya on the other side,

Michael "Waxie" Parness

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