Watching the market intraday this morning, I thought my prediction of a lower close was going to come true. Until about 11:30 when things started to picked up and we closed at 12,086 for a 67 point gain. I had pinned my hopes on the VIX finding support at its 40 day MA, but of course that didn't happen. The VIX just dumped right through that level though and the Dow, after some hesitation at the 12,050 resistance around lunch time, just kept on rising. Anyway, I'm never sad to be wrong about a bearish call.
I find today's results significant because we have now entirely erased the Japanese earthquake market crater and are now back to the bottom of a trading range that lasted from February 23rd to March 9th. Now that the market has broken two important levels ( the VIX support and Dow resistance) and totally ignored the continuing instability in the Middle East along with a resumption of rising oil prices, I'm thinking there's more room for stocks to run tomorrow. The next two days are historically bullish anyway, according to The Stock Traders Almanac. And the weekly chart is shaping up even more bullish than the daily chart. We'll see.
Trades
Today I looked for a new entry point to get back into Ford, but couldn't find one. Instead I bought some Intel (INTC) at 20.33. But my biggest surprise was OMEX, which suddenly took off around 10:15 AM and finished the day with an almost 16% gain. What's really odd is that I couldn't find any news about it anywhere or any reason for the move, which was its largest gain in over a year. Did they suddenly discover a new shipwreck loaded with gold and silver coins? Who knows. But I was sure glad I added to my position when the market was on sale last week. It paid off nicely today.
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