Monday, October 17, 2011

Retail Sales up on Friday, Commodities up on Monday?



So retails sales on Friday was 1.1% much better than the 0.6% expected, Google came in with better than expected revenues, and we saw a huge lift in tech shares through AMZN and GOOG both moving close to 5% on the day. I expect tech sector to continue to outperform in the final quarter of the year, I haven't yet gotten any exposure, but will pick my spots to get in, once I reduce some exposure in commodities.

Whilst we approach the resistence levels that everyone is watching 1250 we have to take into account both the sentiments, economic data and the macro developments.

Sentiment is definitely improving - with the less negative headlines now no longer a hurdle. Economic data improving, both on the company and the US front. The final frontier of the g-20 meeting are now in the works, and should see some moves this week - this final confirmation may lead to the meltup as the cautious players will pile on at week's end.

A key stock I'm watching is BHP, as it is threatening to break the 50MA, which is in line with last week's resistence and the timing of the upside in the sp500 levels - which are actually moving higher intra-day.