Jan 02 2009
We are here!!!!!!!!!!!!!!!
We are here, the first trading day of 2009. Thankfully surviving 2008 and looking to prosper in 2009. Everywhere you are reading about the disaster of 2008 and how it should be followed with an up year but then the forecaster describes a weak 1st half of the year that tests the lows and the beginning of a bull market. As per the norm, nothing will be farther from the truth. My opinion is that we will see exactly the opposite.Today, I see the markets in a bottoming formation for a significant 1st quarter rally that will see the Dow eventually reach the 10,000 level. I see the Dow being the weak sister with the Transports and Utilities leading the way. These indices have been in a bottoming pattern since October, Transports led by Airlines and Truckers benefiting from the current energy levels and Utilities looking to benefit from the infrastructure stimulus packages that will come from Washington.For today, a higher openning is clearly in store, don’t think this is anything to chase. So I am going to sit tight with existing positions in truckers and airlines, look for a strong finish to the week. I have swing trading positions that I will be looking to either sell outright or sell call against early next week. I expect the airlines, machinery and utilities to lead the way for an S&P 500 rally to 1,000. Strongly recommend staying away from financials
