JPY (Japanese Yen) June future settles below the 50 DMA after giving everyone a scare last night. It rallied just enough to close the late March gap and tag 50% 2007, 0.008560, now resistance. The carry trade is still alive and well. Shorts were caught like deer in the headlights as equities did not do the "obvious" follow through selling. With everyone thinking repeat of last April, the markets did what they do best: catch everyone wrong-footed. As long as OEX holds 670 on pullbacks and the COMP keeps closing above 2500, bears will be hard-pressed to make a case. Semiconductors were on a tear today as were financials. When those two are up, it's suicide to stay short. Target high for NQ (NDX future) this week could still be 1859/1861, Feb gap close.
GOOG is doing well after-hours and unless the Yen starts shooting up again, bulls will hold the line.
I have little doubt the COMP will eventually make its way up to 2600. In fact, my guess is bulls are shooting for 2645.67, 38.2% 2000/2002. That will be a tough one to crack, but we will deal with it, if and when we get there. For now, we are still in buy the dips mode until support breaks. SPX and the DOW need to dip to 10 DMA's at some point, so a pullback is in the wings for next week.
This entry was posted
on Friday, April 20, 2007 at 4/20/2007 01:25:00 AM.
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