8:30 am EST The durable goods number released this morning was much stronger than expected. That sent the market futures higher. Look for the Nasdaq to benefit most on a percentage basis today. Research in Motion released some solid information this morning. Oracle released strong earnings yesterday after the bell. I think we will see some buying in the morning. I am hesitant to say that we have seen the end of the correction and we will resume the uptrend. If we go back into rally mode here, I feel a little more comfortable than I did with the rally a couple of months ago, but I'd like to see more selling for the health of the markets before we go higher.
It looks like we are seeing a breakdown in the dollar/equities correlation. I am keeping my eye on this. As I said in previous posts, a trend is a trend until it isn't. We might be seeing that breakdown here. I think we are seeing some jockeying going into the window dressing stage of the month.
If you are a believer in the rally this morning, an easy momentum trade is to place a quick trade in Oracle (ORCL). The big money takes time to move stocks like this higher. As an individual, you can take advantage of this by buying early. If the market moves higher over the next couple of days, Oracle will go with it. You can make a quick couple of percent in a short period of time with this trade. This trade should be made with a small profit target and a tight stop. The stock is not that volatile, but I think there are still some big money sellers in the market who could use a big, liquid stock like this to raise some cash. Until next time, stay low risk..
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