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AAA for now … and Market Rally continues

Author: Harry V (info)
Website: http://myoptiontrades.com
Posted: February 26th, 2008 at 8:20 am EST
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Verdict is “AAA” for now for ABK and MBIA, under negative watch and Rally gets some strength all across. 

Bullish candle formations in all Indices and the treck to OUTER DOWN trend lines is on. Technically we are in BEAR MARKET RALLY and smart money will be selling these rallies. Depending on the strength of this move up to test the resistances, we have ”Target” watch lists as under:

$SPX .. First target is 1420 and further out 1460, 1510. If the last target is achieved and decisively broken we have to revisit our BEAR Strategy. For DOW, 12895 is our first target, followed by 13230 and 13650. NSDQ, 2540 followed by 2630 and 2725 and $OEX our targets are 665, 685 and 705.

This rally is also closely related to Carry Trade YEN strength and / or weakness, which for now is quite happy holding the 108 level. Yen is supported by 20 day MVA and overhead resistance 110 level is 90 day MVA. Move to this 110 level could correlate with our initial resistance targets in Indices.

Time to tread carefully as any surprise downgrades to  Bond Players will be abruptly sold off. PPI and Core PPI numbers are under watch for Currency markets this AM and likely direct the Stock Market moves as well.

Happy trading ahead.

Harry V 

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