Yesterday I said that today’s open would decide how the market closed. I was right: the market opened in green and closed in green. Within 5 minutes from the opening, the S&P surged up 12 points. Then it retreated quickly and went to negative within 30 minutes. However as I mentioned previously that any action in these volatile markets should be halted until the dust settled. I was patiently wait for buyers who bought the dips to confirm the uptrend. I reloaded my long positions at 11am and let them ride to the rest of the day.
In these days the markets are traded the headlines. More buyers were positive about the future global economy when the ECB announced its first rate cut in two years. In addition, rumor that the Greek’s referendum on EU’s bailout plan would not be necessary if Papandreou’s opposition backs the plan aided fuel to the rally.
For tomorrow outlook, we will continue the uptrend to test Oct 27 high. I didn’t close any long position today.