Quote of the day:
"I told my wife that a husband is like a fine wine; he gets better with age. The next day, she locked me in the cellar."
A second straight week of gains, with SPX a little bit above SMA200 and a decent buy signal on intermediate time frame, that's how I would summarize what happened lately in the stock market. But exactly as US football team needs something more than two draws to qualify for the next stage, S&P needs more than three flat days in a row to put bulls in control for another couple of weeks! The option expiration week it's over and now the investors, traders and speculators can focus on the next step. Is it going to be up, is it going to be down? Who knows, I don't have a crystal ball but I do know is that a trend once started is most likely to continue than to reverse (one of the Newtonian laws. Don't worry if you don't know it, I didn't like Physics either)! This of course assumes that no major event is going to happen soon, an earthquake, an alien invasion or if the end of the World programed for 2012 doesn't decide to come two years earlier. Otherwise, we should have a good chance to see this incipient uptrend consolidating above SMA200.
I tried to get BIIB today, a crappy stock in an awful long term downtrend but who started to turn bullish on intermediate time frame but my "call" refused to get filled. Now I hope the stock will plunge on Monday just to congratulate myself how clever I was not to buy it today, which of course is going to be a lie since I didn't buy it because I couldn't, but my wife doesn't read this blog so I can brag in front of her as much as I want (about stocks, of course, otherwise....) Why have I decided to give this stock a chance? You already know it by now, if you look at the chart you can easily see EMA50 crossing EMA100 on 60 minutes chart, plus a nice climb above the downtrend line (on daily chart)
Have a nice week-end!
P.S. I added FSAIX (Fidelity Air Transport) to the list of bullish mutual funds one could buy in his 401(k). Let me know if you want me to have a look at Vanguard or TIA-CREFF mutual funds