Thursday, November 04, 2010

Stocks Surge - First Upside Target Reached


Stocks surged higher today on excellent volume with commodity related stocks leading the way higher. As you know I've been bullish since late September based on technical, cyclical as well as seasonal considerations. My 1st upside target for the S&P was a test of the year high which we reached today. I liquidated half of my long position on the close but will continue to hold my core long position for a rally into the new year.

You can read my original post from late September regarding why I turned bullish on stocks by clicking here.

2 comments:

ben said...

It is a short covering rally and
related to the depreciation of dollar. When the correction comes, it may go down fast as many people will run for the door.

704set said...

I find most rallies start with short covering. These are pros and they usually get stopped out quickly.

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