Thursday, February 3, 2011

A Rally Very Likely Tomorrow, RUT And NAZ Need To Set New Highs

SGS is Long (as of close of 12/1/2010)
RTS 20110103 Long Portfolio

Market very likely will rally to set new highs for SPX, DJI and NDX tomorrow.  What bulls love to see is that NAZ and RUT follow suit and set new highs as well.  I think chances are excellent for that to happen tomorrow.  Poor bears, they have to take yet another shellacking right before the weekend.

The only wild card is Egypt.  Thing are turning from bad to worse.  It's early Friday morning (Muslims' day of rest and prayer) there. Today things might get totally out of control resulting in 100's of deaths.  Market would sell off in that case and we could possibly see SPX testing its 13D EMA around lower 1290's.  I think that would be a good oppertunity to scale into long postions.  I would buy that dip, SPY, DIA, TWM and QQQQ.

Disclaimer: The views expressed are provided for information purposes only and should not be construed in any way as investment advice or recommendation.  Furthermore, the opinions expressed may change without notice.