Sunday, April 1, 2012

DJIA and Nasdaq 100

DJIA and NASDAQ 100 for the week starting 2-Apr-2012

DJIA

DJIA closed at 13212.04 pts. for the week, for the 1st quarter of 2012, the strongest quarter in 2 years.

US Stocks rallied as a result of the ultra-loose monetary policy from US Federal Reserve, Mr Ben Bernanke further added that - more stimulus is required to accommodate the current economy situation; along with the improvement of economic data; summary of all - increase investors risk appetite and more cash in the equity market.

Quote:
“The market can continue to rally into May and the early part of June,” Jon Fisher, a fund manager at Fifth Third Asset Management in Minneapolis, which oversees about $16 billion of assets, said in a telephone interview. “You have all that monetary policy unleashed in the market globally. At the same time, you got a huge improvement in sentiment. Outlooks for the rest of the year are going to continue to be positive.”
Source: Bloomberg

From the economic data front, last Friday there were no major release, Personal Spending rose by 0.8% in February 2012 (more than consensus 0.6%) boosted by the strong employment data. The Thomson Reuters/University of Michigan’s final index of consumer sentiment rose to 76.2, the highest since February 2011, from 75.3 last month.

Next week focus: US Non-Farm Payroll
2nd week of April 2012: Earnings & Report season.

From technical chart:
Weekly: DJIA has posted another positive candle but the range is capped between previous week’s H-Lo range.
Further sideways movement is expected for early of the trading week.
Range expected: 13100 – 13250.

Daily:
Recovery from 13030 regions on last Thursday confirmed 13000 a strong support which shouldn’t be broken below to ensure the rally to next target 13300 and 13450.

However, if market has broken below 13000, next strong support is 12850.

Trading Plan:
Expect support at 13100 region and initiate long with SL below 13000 and ride the rally towards 13250, 13300, and 13450. Check 4 hours chart if market came down to 13100 regions and observe rejection of EMA50.

Beware of NFP on Friday, sit tight for the ride.



NASDAQ 100

Super bull shall continue … ^__^

Support 2740
Strong Support 2713
Immediate resistance 2790 (BKO level)
Target 2815-2820.

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