Friday, March 12, 2010
Stocks Poised to Continue Rally; Demand for Risk Weakens Dollar
Retail Sales just came out bullish. Equity markets are soaring. Bonds are breaking. The Dollar is plunging. The market reads this report as good. The key will be to be able to

separate the report from the trade. The question is will U.S. investors chase equity market higher or wait for a pullback? Overall, however, it looks like a strong report.
U.S. equity markets are trading better overnight ahead of this morning’s Retail Sales Report.

Chances are that you are one of those that contributed to Avatar grossing over $2 billions at the box office, the most ever for any movie. One of the reasons that such high profile productions are rare is that since they are so expensive, they represent a risky bet for movie producers. That task will soon become much easier as they will be able to easily share that risk with other investors.

Thursday, March 11, 2010
U.S. equity markets are expected to open weaker this morning but off their lows. Last night’s news that China’s inflation was higher than expected, fueled speculation of a rate hike

which helped drive down demand for higher yielding assets. The lack of follow-though to the downside has triggered a short-covering rally which is helping to boost equity prices from their overnight

lows. Yesterday the March E-mini S&P 500 stopped at its January high of 1148.00, triggering a profit-taking break.

Todays big mouth stock. I did very little trading.
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The numbers:
Stocks: gross +12 net +6 shares 1200
Stock Futures: gross+40 net +30 contracts 4
Forex: none

Wednesday, March 10, 2010
Stocks Continue to Rally despite Drop in Volatility
U.S. equity markets are trading firm overnight after yesterday’s surge to the upside. Buying pressure dried up late in the session, but no damage was done to the uptrend. Volatility

is falling which is making traders appear complacent. This could be both good and bad. On the good side, it could mean traders are gaining confidence in the recovery which will send prices higher.