DJW08I've been scratching my head all weekend to figure out...

DJW08

I've been scratching my head all weekend to figure out where we go from here.It seems we have broken out from the 4 month consolidation sideways buisness, and closed above.The questions im asking myself is this just a push through resistance to fake the amatuers on board long or is this a reversal.Also last week in the US was options Expiration week,this could of also been behind the rally,to burn all the PUTs in the market.To be honest i was thinking of Shorting the DOW over the weekend but the chart is telling me not to ATM.As always after a big move on the DOW,there will be a pause or pullback,so expect that on monday.Dow was up over 4% for the week.

Im also cautious now about companys reporting over the coming week.Now that many have reported in line, or better than analyst expectations,it raises the bar for the next company to report.So far we have had average to quite positive results.I am no fundamentalist but i analyse the technicals and study the psychology.Now when you have everyone expecting good results and then to be dissapointed cause of the bar being raised,they will dump the market straight back down.Fear and Greed run the show here, as we all know.

I am waiting to see how we perform over this coming week here in OZ.After last weeks performance on the banks i would like to see a switch from resources to financials.If the financials can hold their gains tomorrow i would be a buyer for a short term rally through the week.

So i am not going to jump the gun here and say that we are out of the woods until i see what the DOW does over the next 2 sessions.but so far it does look good here for us in OZ.

gunn