Dow Jones surged by more than 100 points after the reports that China will provide some aid for Europe's financial turmoil. NASDAQ, S&P 500, and gold all finished green as well signifying some strength. What should this do to PHISIX today? This may push PHISIX, especially blue chips, up but may fail to sustain momentum because of the long weekend ahead. Long weekends normally prompt selling because of the anticipation that something bad may happen to the market. However, this could go in two ways.
1.) The market may do good during the weekend, or
2.) The market may not do good
If there will be some negative sentiment during the weekend, stocks are bound to sink next week but if there will be some positive sentiment, stocks are going to go up. Those who are brave enough are going to benefit the most.
So what should we do? Take greed and fear away from the picture and assess your risk tolerance. If you can afford to put your money in some stocks when the market is closed and take the risk of having negative sentiments during the weekend, pick stocks that are trading with high volume or some blue chips. The rewards are great if there is some positive sentiment. If you're a little conservative, stay liquid.
Stocks to look at:
Some stocks went up significantly yesterday but among that stood out is NI. For the second straight day, NI has went up significantly and may be profit taking bound. Instead of NI, pick AGP. NI-ORE-AGP moves together and if one starts to move up, the others are going to follow.
PWR and the IP-CLOUD-DFNN tandem are also worth looking. PWR's price action show some buying strength while IP seemed to bounce at the 1.8 levels. It looks like IP have already filled the gap and is bound north again.
For the past 3 days, the volume in PHISIX is been relatively low.
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