Stock Market Forecast For March 28 2011

Stock Market Forecast For March 28 2011 : The bulls and the bears continue to battle it out, each gaining dominance for a short time only to quickly lose it to the other side. The bears have had a slight advantage over bulls for the last two weeks but that has changed this week. For the first time in three weeks, I'm giving bulls a slight advantage going into trading next week.

The Dow, S&P 500, and Nasdaq are all in weak uptrends.

What is really surprising is that the Russell 2000 is in a strong uptrend. Riskier speculation in small cap stocks has returned as traders bought up bargains last week.

When the Russell 2000 and the Nasdaq lead the swing move higher across the major indices, expect a big upward move. Now we don't have that yet from the Nasdaq but it is important to note that the Nasdaq had been lagging the other major indices and so last week it caught back up to the pack.

Silver continues to be the strongest sector with the silver market in a strong uptrend.

Gold has strengthened into a strong uptrend as well as commodities had a good week last week.

The U.S. dollar is upgraded from a strong downtrend to a downtrend. The downtrend in the U.S. dollar continues to support the strong moves in gold and silver.

The TICK clearly shows a bullish bias on the swing moves where the swing moves up do not have matching swing moves down. This suggests an bullish bias by institutional traders.

Probably the biggest chart though that supports the thesis that bulls have a slight advantage going into trading next week is the NYA50. Over 60% of stocks that trade on the NYSE are trading above their 50 day moving average. Last week, this had fallen to 41%. This was the lowest reading in 8 months. Bulls stepped in last week to buy up bargains made available by the Japan earthquake, Tsunami, nuclear reactor and melt down, and Libya war.

Fundamental analysis reports that have the potential to move markets next week are:
Monday, March 28, 2011 = Personal Income and Outlays
Friday, April 01, 2011 = Employment Situation
Friday, April 01, 2011 = ISM Mfg Index

My top pick for trading next week is Biostar Pharmaceuticals (BSPM). I bought this stock in my own personal trading account on Friday. The stock has dropped a little since my buy and can be purchased for even cheaper than my entry. It is a stock chart play on the intra-day break above the 200 day moving average. This is a high risk, high reward play in China's growing health care sector. The company has an incredible forward price to earnings ratio of just 3. What made the stock pop today was financial reports for the 4th quarter that show revenues increased by over 50%! This is a hisk risk, high reward play. source http://www.guerillastocktrading.com/stock-trading/stock-market-forecast-for-week-of-march-28-2011 For the latest updates PRESS CTR + D or visit Stock Market news Today

Related Post: