Ship is not finally sinking

On Friday, we saw some steadying of the market ships. SPY, DIA, QQQQ all close above the Open in positive territory.

Still there is a bit of pessimism but I think we are about to come out of the Sacry pits here and see some good sunshine. As Barron's pointed out last week
http://online.barrons.com/article/SB127387506735591845.html#articleTabs_panel_article%3D1

Most of the big U.S. companies became lean from last year's recession. Their operating expenses have become lean and now the Profit margins are also growing nicely as costs of commodities or Cost of Goods Sold on Income statement have come down and are staying down.

A lot of S&P 500 companies are gearing up to accelerate the spending, hiring, investing and acquiring that most companies curtailed amid the credit stress and deep uncertainty of the recession.

With earnings parade starting and options expiration week behind us. Lets look at Monday to start dabbling back into the markets.

I will start posting some of the strong comeback stocks that can make us all good money.

All Bets are off- All indicators pointing downwards

Lot of folks start contrarian thinking and few might have courage to go against the fear and go long on SPY or DIA. One would suspect that we are so oversold that Markets might get a bounce back anytime. Also this is not a time to add to any shorts or puts for portfolio protections.

The Flash Crash showed us one thing on that thurday afternoon that they was not much appetite to buy more stocks.

Till some of the markets indexes stabilizes, this is not a good time to be either short or long. Overall we are in Bear territory.

Today's Down action

Market has been chopping around, tries to get back it footing and Bears knock it down...

Expect some gaps down tomorrow. SPX, DIA, QQQQ.. All expected to gap down then propably. Also expect the pinning action of stocks due to Options expiration.

Inflation Video

http://www.youtube.com/watch?v=eb1n1X0Oqdw&feature=player_embedded

Where is market heading?

We had a big rally since Feb 2010. Market was up almost 12% at time without any profit taking. Since starting of May, the institutions started taking profits and hence the market was expected to go down..

This was coupled with couple of Scary Boos..

1) Greece Debt - Chances that Euro will discarded as money making EU nations might pullout of Euro..

2) Unusual usage of Derivative esp. e-Mini futures by hedge fund

3) NYSE not able to keep up with orders and other stock exchanges going around NYSE and having markets go down 1000 points..

Techically, the markets have broken the uptrend and along with all the scary boos.. Overall market is gyrating downwards..

Fundamentally, companies are strong...., Last year's economic depression have made companies lean, hence we are seeing double punches.. Revenue # are up and operating expenses have been trimmed down.. So final #s, EPS are above the normal figures. .and will continue as we are seeing the GDP grow towards 3%...

This is good time to get into fundamentally strong companies like Apple, Oracle, Cisco, Proctor and Gamble etc(look for operating #s above debt). Also the High dividend yielders are a overall good choice.