Sunday, March 30, 2014

Indices Are Oversold, Expecting A Sizable Bounce This Week

RTS is selling  FB, ALXN, MU and buying EXPE, HAL, CVS in their places on Monday near the open.
My plan to do all three buys near the open tomorrow then wait until mi-week to sell. 

Action on Friday was certainly disappointing, but all major indices still managed to close nicely into green.  As of close of last Friday, major indices are oversold.  I expect a rally this week that would push SPX to test its Primary Downtrend Line (PDL) around 1874, possibly as early as tomorrow.

There is an awful lot of doom and gloom noise out there these days, but ultimately it's the first quarter earnings and forecasts that would either send indices to new highs or cause a major correction.  So far all signs on my radar point to good earnings and outlook for most companies.

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.