The Wrap 5/2/12

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Well it was a good ay for Wall St. as the dip buyer stepped up aggressively. Please check the P&L for any updates as usual.

When markets get as oversold as they were on Friday two things happen, we crash or find a short term bottom and rally. The market is still in a longer term uptrend but has found itself in a short term downtrend ever since we topped at SPX 1420. So what we saw today was a counter trend rally. These rallies can be powerful and last for a few days, sometimes they mark a bottom and resume a new uptrend.

It’s too early yet to know, but for now we will continue to follow the momentum. I added two new names to the P&L during today’s trading: X & UCO

Have a great night and I will see you in the chat room in the morning.

Joe

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