Friday, February 6, 2009

Lift Off

The rally in the markets on Friday was definitely a long time coming. We finally broke out of that key 850 resistance I have been yelling about. The market is NOW telling you that it wants to go higher. Bad jobs number. Yada Yada Yada.

The banks ripped higher today to lead the way on the short squeeze. BAC is now up an insane 63% from Thursday's lows! Just nuts. Tech was also a strong leader on the day and the QQQQ looks good for next week to continue this rally.

This does seem to have a "buy the rumor, sell the news" smell to it. Monday's Obama speech on the bank plan is what to watch for. The market is already getting ready for good news. Thats why we rallied from 817 to 869 on the SnP's since Thursday's lows. I think we should be looking at a big continuation next week for the SPX. If we get over the 880s then its off to the races. This could be the beginning of a multi month rally in the SPX. A bear market rally it may be, but remember that these could be wild and you wanna be a part of them.

I am now thinking we could get to 1000 SPX by April. Let's go baby! Enjoy the weekend. See ya Monday.

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