Stock Update: GS

R2 - $184
R1 - $176
S1 - $166
S2 - $147
Big bad Goldman Sachs. The investment bank who has a ducks back and has somehow managed to avoid getting implicated in anything despite all the rumors around their involvement in helping Greece to mask its deficit, its derivative activities with AIG, using its insider knowledge from transactions it was handling with clients to take opposite positions on those clients to name a few.

The fact is that they are alive and kicking. At the end of January this year, their stock hit a low of $147. Friday Mar 12 it closed at just under $175. The first hurdle point is $176 which it did touch briefly on Friday, and if GS can maintain its momentum above that, I'd like to believe it will be a short walk to $184 beyond which we can possibly see $190 again.

Expect a pull back in the next couple of weeks. Take profit if you are in and wait for opportunities if you are not.

Source:E*Trade

Stock Update: AAPL

What is not to love about Apple Inc these days? $22million bonus for Tim Cook? Sure! Go ahead!

As we get closer to the launch of the iPad, the talking heads like Cramer have been pushing up the stock. After wavering in early March around $210, we saw a gap up on Fri Mar 5 to close at $218.95. A week later we are at $226.60. All that I can say is if you are long AAPL take profits. Don't worry if you have missed this move to get in as there will be more opportunities to come.

For now, go short or buy AAPL puts. Be ready as always to close out your positions if it goes against you.

Source:E*Trade

Stock Update: DOW

In my Feb 20 entry, I questioned whether Dow could stay at $29. It managed to do so for a few days before breaking down back to $28. It made a higher low on Feb 25 ($28.32 vs $26.18 on Feb 8) and then a higher high Mar 5 ($30 vs $29.54 on Feb 18). Next we have another higher low Mar 11 ($29.40 vs $28.32 on Feb 25) and we will want to see a close above $30 and then reach $31.40 for a convincing uptrend. To seal the deal however, Dow will have to get to $34. This is not entirely impossible, but as you can see, Dow is very much tied to the gyrations of the DJIA.

If the DJIA can get above 10,800 we will see Dow move towards $34.

Source:E*Trade

Market Update : DJIA & NASDAQ

Dow Jones Industrial Average DJIA
R - 10,800
S - 10,270
The mighty Dow is losing some steam. The early part of the week didn't see much happen and the last two sessions while getting a boost finished weak. Unless we see some good volumes these next two weeks to the end of the quarter, we may finish lower than the Jan 20, 2010 high. This is not a major issue as long as DJIA finishes higher than the Dec 31, 2009 close of around 10,600 where by the fund managers can at least say that quarter on quarter they are above last quarters close even while marginal.

NASDAQ Composite Index COMP
R - 2,450
S1 - 2,340
S2 - 2,120
We have new resistance at 2,450. The last time the NASDAQ was there was mid-Aug 2008 before the collapse of the markets. Expect some pull back in NASDAQ listed stocks, so take profits over the next couple of weeks or at least protect the gains you have for when the market does pull back.

Market Update : DJIA & NASDAQ

Dow Jones Industrial Average DJIA
R - 10,800
S - 10,270

A very strong finish to the week! The bulls are on a roll! The question is whether there is enough money out there to really push volume forward and keep moving the markets up. There appears to be some stability forming in the U.S. economy, but the big issues still remain - jobs and housing loans. Unless people feel more secure about their jobs, they will not buy consumer goods. Neither will they buy big ticket items like cars and white goods let alone homes. Interest rates are low, but for how long? Consumers are more likely to pay down as much debt as they can with any additional money. Further the stimulus money is going to have to come to an end as will low interest rates. What will need to be kept in place is retaining people in their homes and reduce the need for foreclosures. If you kick people out of their homes, you take away a significant psychological form of security. Buy people more time responsibly to keep their homes until they get a job or gain enough equity back in their homes to 'comfort' the banks and support asset values will do more to get the economy back on track.

Next is jobs. If you have a job, are able to keep your costs down, reduce debt, and stay healthy, you will survive. If you at least had some saving, you can survive for a while, but you gotta get cash in the door eventually.


NASDAQ Composite Index COMP
R - 2,340
S - 2,120

Technology is king! Some big moves this week and we are getting closer to Resistance at 2,340. Look for topping out in the coming weeks and a pull back. Take profits as you go through the coming week.