Two Ways To Play: Fingers Crossed For Year-End Rally
Strengthen your portfolio in good times and bad.
Believe in the S&P!
According to Bloomberg, Wall Street strategists need the S&P 500 to rally 20% by December 31st in order to realize their forecasts.
Analysts at Goldman Sachs, Strategas Research Partners and JPMorgan Chase are some of the most pessimistic, but still say stocks are cheap relative to earnings - and an easing of the credit crisis could help boost equities. That kind of gain in the S&P would mark the biggest year-end rally on record. And given the recent volatility, it isn't totally out of the question. However, as it stands, the S&P 500 is still poised to have one of the worst years in its history.
See Toddo's perspective in last week's Freaky Friday Potpourri: Flat is the new Up.
From the Bull Pen: Bulls can consider mid-cap stock Waste Connections (WCN) for an upside play. Sell stops can be set below $32.60, which coincides with the 20 and 200 DMAs.
From the Bear Cave: Keep an eye on Google (GOOG) in this rally. If the stock can't perform in this tape, it may be a sign of excess supply. A buy stop can be set around $340 for those testing the downside.
Quick Check Around the World
Asian trading closed with the Hang Seng 3.52%, Nikkei 5.81%, Sensex 5.74%, Taiwan -2.06% and Shanghai 7.27%.
Glancing towards Europe, we see the CAC 3.52%, DAX 3.55%, FTSE 3.16%
As of 8.30 a.m. EST, S&P Futures are trading +18 to 955, and Nasdaq futures are +20 to 1310.
A Look At Commodities
Crude oil is trading +3.41 to 64.45. Gold is +16.00 to 750.90. Silver is +0.297 to 10.260 and copper is -3.000 to 169.25.
The dollar index is -0.679 to 85.228.
On the Radar
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Happy Monday! Good Luck!
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