Hi Everyone,

The market is behaving pretty closely to what I expected in last Sunday’s Trading Room.  There is definitely still buying out there; but, the market has just run up too much too quickly and needed to either pullback or consolidate.  The last three days we have seen the market trade down in the morning and recover near the close as the buyers come into the market.  It also really looks like the bulls want 9000 to hold on the dow as that is where we are seeing some support. 

I am still of the opinion the next move will be higher, possibly to Dow 9500 and S&P 1020.  However, as discussed in the Trading Room, I think the markets are stuck between 8000-10,000 for the next few years.

Robb Reinhold

Today we got the rally I talked about yesterday in the Trading Room.  I said I thought the market would rally off Goldman Sachs earnings on Tuesday.  However, before the bell today, a very influencial analyst, Merideth Whitney, upgraded the stock and said she expected “blowout” earnings this quarter.  The stock opened up 6 points and set the tone for the rest of the day.  Today was one of those days where the .TRIN stays low, telling you there will be buying all day long.

The financials, retailers, etc performed well today while the commodities sector still struggled.  As I said in the trading room, we are waiting to short commodities stocks off this short term rally.  I am still watching for short opportunities on POT, BG, MOS, and CF.

Happy Trading

Robb Reinhold