The Stock Market rallied lightly on Friday off Warren Buffett's interview on Squawk Box on CNBC where he said "today the market is priced more attractive than last year", Ben Bernankes comments on the economy were not that bad, and Most off all Lehman Brothers Buyout rumor got the market excited and allowed the financials to rally modestly. I except a modest rally for the S&P 500 to go up to around the 1300 level again.
The Trend of chop, chop and more chop is likely to continue. Sell the Rips and Buy dips as Jeff Macke says will probably continue to work until a fundamental shift occurs in the economy or the market has some reason to rally. The Market will not likely move Up or Down appreciably until after the US Presidential elections in November. The market needs to know for sure who is going to be in office.
In regard to Lehman Brothers, and the Buyout Rumor.....It is funny that people can falsify rumors to raise the price of stocks, but can not say anything untrue and negative to press down the price of stocks. The reason is simple enough, not as many people complain when stocks go up.
The only Trade that I am in right now is BAC calls. I increased the size of my account last week by 11 percent overall by purchasing some Bank Of America calls on Wednesday at $2.30 cents, They are now priced at around $3.30.
My trading has been going exceptionally well. I have not been updating the Blog with real time trades. No one seems to trade off of my ideas in real time. However if requested I will then update the blog per trade on a timely basis.
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