Market on strong footing

• Posted by vinaydh
• on January 5th, 2010

Market has started the new year on a strong footing. Both Nasdaq and S&P made new highs today. The volume too has returned back after the holidays.

We are entering a tricky period now as it’s pre expiration week as well as earnings season will start in right earnest right after the expiration week. I think any pull back due to any of this will be a buying opportunity.The next serious resistance doesn’t come until 1160.

It’s great to see financials taking part in the rally. GS is leading the charge. Meredith Whitney cut the estimates on GS today and it responded by rallying. GOOG came out with its own android based phone today. Surprisingly the reaction was muted but I think it’s only a matter of time before it hits 640. Commodity stocks too are on a tear. It’s only after a long time that the market is rallying on such broad based participation.

The million dollar question is to wait for a pullback or chase the rally. I guess the best approach is to start scaling in on the long side. This market may make it frustrating for those looking for a bigger pull back. It may or may not happen.

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