The rhythm of the market

 

The market, like a song, has its own rhythm, and the success of trading is to listen to the rhythm and dance to its beat.   

 

There are a lot of explanations as why market rose today. One of the more popular theories is the better retail sale number.  But in another day, today could be easily a blowup.  The oil has risen 5 buck.

 

The SP500 put a floor of its trading range and DJIA has climbed back as well. The real stand out is the NASDAQ 100.   From its low set on March, it has rose almost 18%.   And if you believe in chart pattern, it looks like it formed a round bottom. And if that is true, then, you could see it zooms to 2150, another 8% run.   And in turn could lead the whole market out of this malaise.   

 

The worrisome financial, for the time being, it may stop failing, and could climb back to its 20 day MA around 25.   So, at least for one day or two,  maybe, the Lehmans is not going to be the focal point of the market.

 

But dollar and oil may turn out to be market’s undoing. So, if tomorrow’s job number turns to be good, that could help (dollar strengthen).

 

So, it is hopeful, at least for the next few days.

 

Fertilizer definitely break out the triangle pattern, so, the question is when to the pattern ends?    DBA seems up against its resistance, so, whether it can break out will mean a lot for the agribussinss including fertilizer (POT, CF, MON, MOS, AGU etc).

 

Steel rebounded nicely, and could continue its trend.

 

Coal is a better vehicle on energy play than oil.

 

Shipping rebound above their former support, but whether they can climb higher remain to be seen.

 

Solar rebounded with the oil price of course.

 

In terms of technology, the information service company seems the better place to bet the money.   

 

Of course, the euphuism could be turned negative in a matter of a day. So do not let your guide down.