Week of April 20th, 2008, Nasdaq & Treasury Bonds

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Stock Index Corner: Nasdaq Composite

Nasdaq Composite:

The trend of major Indices had a major change this week with the big UP day Wednesday and was followed by a huge Gap Up last Friday after Google and some Dow components liek CAT had positive earning surprises. This had confirmed the medium term bullish trend. Good for the stocks. The taking out of stops accumulated near resistance in Feb and early April provided the bulls with the much needed impetus to break thru the resistance and moved higher.

The next upside target would be 2426 (38.3%), then 2510 (50% retracement)

Outlook:

Big Picture: (monthly): Bearish, and may turn to Bullish if the next weekly trend confirms up.

Medium term (weekly): Sideway to Bullish (Power Indicator may go higher than previous week's)

Short term (daily): Sideway to Bullish

Fundamental:
There will be a big number of earnings annoucement coming up this week amd volatility may continue. Large cap high tech companies like Yahoo, AAPL, Amzn, Bidu, MSFT will provide earnings updates.

Major World Indexes

Medium term trend: UK FTSE (UP), Nikkei (Sideways), Australian ASX (Sideways-UP), Shanghai FXI (sideways - down)

Commodity Corner: Treasury Bond

Technical: The weekly pattern appears topish for Bonds, and Daily pattern shows likely short term downtrend for Treasury Bonds.

Fundamental:
Stocks's positive trend may continue to attract money from bond investors as they look for higher returns in equities as the risks in financial markets turmoil appear to be easing. In addition, the inflationary pressure seems to continue and that may be negative for bond prices but positive for treasury yields in the near to medium term.

Trading ideas : (please do your own research and apply your profit/ stops management rules in all trades, please note except options writing, all the other trades may last just several days)

Non Directional Stratgy:

Writing Options: Emini S&P 500 OTM Puts, Live Cattle puts
Directional Strategy (leveraged):

Futures: Short Treasury Bond

Stock Options: Long OIH Calls, Long Bidu Calls, Long Pot calls