Thursday, January 3, 2013

Daily Analysis and Stock ideas for 1/4/2013



Daily Analysis
As I noted in my post "Time for digestion", we are overextended with huge gains on Monday and yesterday. I was expecting a quiet digestion day, which is what we got for most part today. Fed minutes spoiled the party towards the last part of the day. The good part was that even with not so positive words from some Fed members, markets held up reasonably well. Tomorrow is weekly options expiry day, so the markets may be a little bit more volatile. I'm expecting a down to neutral day tomorrow.

SPY levels
Resistance - 145.60, 146.30, 147.16
Support - 144.50, 144, 143.06

Trade Ideas
Liking some cheap internet stocks for tomorrow. If the market conditions look bad may also look at shorting some of China stocks which look overextended.





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