Lying Around

Just lying around and buying small positions.

Also, selling postions in SII and CAF for small profit.

The following Comment is from Market Edge:
Published 3/13/2009 6:50 PM ET

Stocks Need To Digest Recent Gains

The rally lived on as all three major indexes made it four days in a row for the first time since December, 2007. Whether this is a bear market rally or a real turning point won't be known for some time down the road. However, the more up days we have like the last few days, the more likely confidence will build in investors. Without investor confidence, the rallies cannot mark a longer term trend reversal.

After a three day rally, stocks had many reasons to take a break ahead of the weekend. But after a morning decline which took the S&P 500 back to the much watched 742 level (November low), stocks found some buyers and that support level held. Unable to push stocks lower also forced short sellers to cover their positions, pushing the major indexes to near their day highs at the close. The DJIA finished up 53.92 points (+0.75%) at 7223.98. The S&P 500 gained 5.81% (+0.77%) to 756.55 while the NASDAQ also finished up after spending most of the day slightly under water. The tech heavy index added 5.40 points (+0.38%) to close at 1431.50.

Breadth was modestly positive while volume contracted. Advancers outnumbered decliners by a 19 to 11 ratio on the NYSE and by a 15 to 11 ratio on the NASDAQ. About 60% of the volume was up on both marketplaces. The energy shares and regional banks pulled back while the healthcare took the lead. The contracting volume suggests that institutions have yet put their money to work in this market.

There are lots of events over the weekend and early next week which can drive the stock market. We have the OPEC and the G20 meetings this weekend. Fed Chairman Bernanke will appear on 60 minutes on Sunday and the FASB will discuss the mark-to-market rule on Monday. These events add an element of risk to the market so we can expect some roller coaster rides next week.

Technically speaking, stocks are overbought on a short term basis. A consolidation period which takes the market out of the overbought condition while keeping the bullish momentum (such as keeping the MACD positive) will set the market up for more gains later in the week. The S&P 500 found support at the 742 level today and it needs to hold that support level on any pullback. Should the S&P 500 break that support level on expanding volume, the market will likely retest last Friday's lows. On the upside, the resistance for the S&P 500 stands at 780 followed by 800.

by Yin Lin, CFA

Significant Numbers To Watch

DJIA:
6469 - Support, the 03/06/09 low
8315 - Resistance, the 2/9/2009 high
7852 - 50-day simple moving average
9773 - 200-day moving average

S&P 500:
666 - Support, the 03/06/09 low
780 - Resistance, the 2/25/2009 high
814 - 50-day simple moving average
1049 - 200-day moving average

NASDAQ:
1265 - Support, the 03/09/09 low
1598 - Resistance, the 2/9/2009 high
1482 - 50-day simple moving average
1893 - 200-day moving average