subject: Profitable Trading Techniques Pt1 [print this page] Daily Stock Report for Wednesday Morning, March 16, 2010 pt1
US stocks ended up nicely today after the now famous wording people were looking for is still retained within the statement released today around 220pm eastern were the words of interest rates likely to remain very low for an extended period of time.
It is like the trainer who trains his dogs to salivate when dangling raw meat in front of his face while sitting at attention. The day that language changes in the Feds statement is likely going to be an extremely volatile day mostly on the down side.
Stocks were lethargic and pretty much stood frozen until the announcement was made and a rush of volatility occurred after the Fed announcement.
The Greece situation is starting to unthaw as rating organization, Standard & Poors, decided against downgrading Greeces debt after evaluating the governments recent deficit reduction measures. This will start to reassure the world markets to be less fearful of the worst case scenario and world markets should move up easier now that this situation is improving.
In the future, other countries will likely have similar financial problems with Spain, Portugal, Ireland and Iceland next.
Housing starts and building permits were in line with expectations so that didnt drag on the market. Look for the market to be bullish in the next few days.
Scalp of the Day:
CMI, Cummins gave a decent long scalp today of 2 points off a $59 stock, which is 3.4% profit potential on the long side. For aggressive investors look for slight drops and consider going long the pop Wednesday.
*This is the kind of trade ideas we will be giving in the Trading Room, which we are in beta testing right now.
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