Market gapped up, faded and then ZOOMED the whole day, closing right at its peak! A very sharp TREND DAY, one of the best days a trader can have, if ya catch it!
ENER mentioned here last night on the blog was up over $4 (beastly move, we own the calls!) and will probably get another bump into the CEO speaking at the conference tomorrow. Might want to sell into that strength, at least part, assuming it happens.
ER/Rusell zoomed to a HOY and may get another leg up. Tech is being bought at a furious pace. Even the financials bounced (it'll set up another short soon), but the leaders here are CLEARLY the tecnology companies, and yes, the AGs and ENERGY (solar and oil/gas). I have to say, I'm surprised at the technology rally. I don't think its justified, but if nothing else I've learned over the years that the market doesn't need justification to do anything, it does what it does based on perception. Right now the perception still remains that the 2nd half will see a pickup in the economy. I think thats a bunch of malarky, but I certainly could and have been wrong, I'm not an economist, I'm a WAXIE!
Someone emailed me a question about the Nasdaq vs. the DOW and why the Nasdaq has been much stronger, relatively speaking. It's a fairly simple answer. The DOW has a huge financial makeup. The Nasdaq has a fair amount, but is much more technology heavy. So, in order for the DOW to really get cooking, the financials (Banks, Brokers, Insurers, REITs, Mortgage brokers/resellers, etc). need to start humming, like they did today. When these stocks finally do REALLY bottom, the DOW will rip huge. Of course where that bottom truly is could be now (doubtful) or it could be 4000 pts lower on the DOW (or somewhere, most likely, in between).
In the meantime, let's keep the powder dry. I'm watching ENER being bid up another $1.50 after hours! Weeee! Nice! Love it when its this easy!
Friday should be interesting. The market keeps anticipating an economic turnaround. I really don't think it should be, but it is and thus we run into #s these days in the hopes that TODAY is the day we start to turn it around! Hey, maybe it is, maybe it is! Until or after, though, the TRADER WILL RULE!
See ya on the other side,
Michael "Waxie" Parness