16 June 2010

Cautiously Buy - June 16, 2010

Last night action was not bad. But volume wasn't very convincing.

There are some technical breakouts happened last night. 
Dow Jones Industrial Average 
1) closed above the downtrend line
2) closed above the EMA200 and
3) MFI had downtrend breakout.
4) MACD lines had a Bullish crossover.

1) Euro/USD pair is still under the Primary Downtrend.
2) Investors were happy last night because Spanish Government was able to sell their treasury bills although at a much higher yield than the ones in April and May.
3) US Treasuries auction received very high demand - the sign big investors are still not comfortable with Stocks.
4) Gold is still above the primary uptrend. Flight-to-safety purchases are still not sold out - supporting the motivation behind the strong demand for Treasuries.
5) Greek government bonds have been removed from Global Government Bond Index calculation by Citigroup.
6) BP Oil spill daily volume has been upgraded to much higher barrels per day.

If you want to buy, Buy strong blue-chips like Microsoft, Apple. Avoid Financials for now because Financial Regulation Reform bill is yet to be finalised. I am still waiting for tomorrow Jobless Claims data to confirm whether extended claims for May 29 week did jump or not.

Good luck, Happy Investing and Keep the stoploss points tight.