March is still bullishness of the month

President Obama rejected another bailout for GM and Chrysler and He gives two options for these companies either to quicken their stimulus plan for recovering or to fill out for the bankruptcy. This statement brings DOW JONES down to 7,522.02 (-3.27%) and cause the market was panic with high pressure selling.

What we can do as short term trader is we look at Sector Rotation that nearly get impacted by financial crisis. Take a look at Housing Construction with XHB, ETF for housing builder it moves quite significant during march trading. For the stock, we can take a look at: KBH, TOL, so on.

One of the reason is home price got beaten so badly and for those who have deep money pocket, they just buy and buy more houses for investing since the price is undervalue. Undervalue is sold in the market below the fair value or cost that build the houses.

Personally, I would enter the market once the XHB break above the resistance, resistance is becoming the support so I might wait for few days to enter and when to exit is when the candle attempts to hit the next resistance.

Good luck and save trading

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April is the most bullish month in a year

As we can see from the chart above, $INDU make a rally since March 09 which give a sign either economic start to recover or psychology effect meaning to say people start to buy right now and prepare for the april, the most bullish month in the year and sell when it comes to May, "Sell in May and Go Away." Obviously, some industries get good response from this rally, for example: health care industries, we can take a look at $HMO (index for health care) and some companies such as: WLP, UNH, WCG, and so on. It starts to rally.

Again, can we invest or trade on bearsih market? definitely yes, As quoted from Warren buffet "We feel fearful when people are greedy and we feel greedy when people are fearful." Therefore, it is time to buy with strong fundamental company but got beaten so badly during crisis in fact it shouldn't be down.

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