Market Short Recap

As we have continously pointed out, we are in bull market. After window dressing, we apparently see that market is under strong accumulation. RIMM, BIDU, BTJ, GOOG, AAPL all lead the market high , also creating NAZ 6 years high. But here you may wanna think about another question, do we reach the top?

Before answering this question, it would be more sense to ask which sector could outperform next better than asking whether the market top. If you watch market closely, will be able to find that Tech sector step out 9% in the second quarter, only 2% behind the energy sector 11%. Therefore we have enough reason to believe that these two sector s will continue to outperform in this coming quarter.

In term of next week, market has pulled out from the oversold region in Window dressing period. Also Our market indicators still point to rally though have been weaken a little bit after NAZ reaches new high.

More to come during this weekend.

To be continued.

Normally we want those leader sectors to confirm each other. However it doesn't show this time, signing a weakness of the market. Based on our experience and projection, another run of correction is possible but not highly possible as we pointed out last time. To avoid any unexpected catch up, in our opinions, focusing on sector in energy, tech and financials could lower the probability of failure in trade. And Not as aggressive as we were since the end of last month.

Several stocks could deserve speculation:

DNDN: this was a old flyers previously, however its recent booming call options and limited downside space may lead to another huge and short rally move.

VSEA: a fundamental solid corp who has been dropping after its sounding er last qt could possibly get another 20% run starting from here.

We recommend to be defensive trading last week , which mean we don't really recommend to get your account exposure more than 70% in the next trading week. Staying away from a risky week will be the best way for general purpose.