Thursday, May 13, 2010

Dow Forecast for 5/13/10

The Dow easily held its key support level of 10,700 this morning. That put to rest all my expectations yesterday of a lower close. We ended instead with a rally of 149 points to close at 10,897. My SDS limit order fortunately just missed being hit, so no harm was done there.

Tonight, there really isn't much of any particular significance going on. Since yesterday's spinning top was resolved to the upside, I'm now looking for resistance in that direction. I don't see anything until 10,990, which is last month's major support level. Being that a daily uptrend is now established off last weeks lows and since none of the indicators on my chart are yet in overbought territory, I'd say we're good to head back to that area. So I'll be looking for further gains tomorrow.

Today's trades: I bought more AMD at 9.55 and picked up 200 shares of SONS at 2.48. Normally I don't look at stocks under $5, but I'm going to take a purely speculative chance on this one. And for a total outlay of less than $500, there's not a whole lot of downside.

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