Tuesday, March 06, 2007

RALLY

I expect nothing less than a strong rally in the US markets today. Asia is a stream of green arrows. India up over 2 % , China up nearly 2 % , Japan up 1.2%. Europe is very strong too and the momentum, should carry across the Atlantic.

The Yen has seen a big decline which should help us plenty since, it was this 'unwinding' of the carry trade and subsequent appreciation in the Yen, that was a big factor in the stock market plummet.

The economic data released today has been pretty crappy. Lets see if that puts a lid on US equities. Productivity is down and same store sales stink.

Greenspan is at it again . Now there is a 1/3 chance of a recession. Hmmmm. How does Mr. smarty pants figure that out. 1/3. Why not 2/5 or 1/6 or 30% or............

Will bad debt from the sub prime mortgage fall out be limited ? Paulson certainly thinks so. I do not.

The plan today is to expect a rally. Nothing less than 100 points on the Dow, 25 on the Nasdaq and 15 on the S&P 500. And we have Bernanke speaking . Will he spark of a huge rally ?

2 comments:

65Trader said...

Great call!!

IM said...

Thanks. It was going to happen sooner or later. Way oversold short term. I'd like to see what happens tomorrow though. Will the upward momentum continue or will it be more bloodshed.....