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You want direction….You got direction!

Author: Varun Kanotra (info)
Website: http://www.targetsix.com/
Posted: December 15th, 2006 at 7:20 am EST
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What an amazing score by the bulls. Finally after many boring trading days, the DOW hits all time highs. The S&P also made new multi-year highs while the NASDAQ is 12 points away.

I had mentioned in my post yesterday that the NASDAQ was in an symmetrical penant formation and said that it should break out soon in either direction. Well it did break out today to the upside. One should expect continued bullish action in the market over the next several days (unless the CPI numbers today show any cause of concern) and we could possibly see new highs on the laggard NASDAQ as well.

The rest of the indices have climbed back in their trading channel so the path to least resistance (atleast into next week) is bullish.

The VIX is back near ALL-TIME lows people. It closed at 9.97 on thursday. All-time low is 9.81. WOW! I wouldn’t be surprised to see lower lows going into next week.

One of my favorite stocks (the one being google) RIMM showed some great buying. The stock moved up over 5% with an opening gap on huge volume. There is some overhead resistance at 140. A break through that should provide additional buying opportunity.

The January 100/105 put vertical is paying 40 cents, 105/110 is paying 60 cents, and 110/115 put vertical is paying 85 cents!

AAPL bounced off its 30 ema and is poised to move higher. This is a great entry point for an AAPL trade. The 72.50/75 put vertical is paying 25 cents, 75/80 is paying 75 cents!

OIH broke out of its consolidation and provides a great buying opportunity in the oil holders trust. The 148 area should now act as solid support. One could wait for a retracement or buy it here.

That’s all I have for now. If you ever have any questions regarding any of my posts, please feel free to ask questions by clicking on the comments button below the post.

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