Price is right ?

There are many ways to measure the value of the stocks, some use P/E, some use cash flow, some use ROI etc..   when there are absolutely nothing to be measured (for example, a dot com on paper), people will let their imagination run wild and come up with something totally out of this world,like price/click :)..  However, there is another way to decide whether the stock is cheap or expansive, it is not decided by the stock itself, but rather, by the demand and supply, that is "technical analysis".  

When the future looks muddy, people turn to the TA, and right now, nobody can say for certain whether we are in a recession and whether we will have a recession.  Thus many trade can be attributed to the TA. 

Yesterday, the NASDAQ successfully defended its support, and today it provided a little more margin of safety by pushing the indexes a little more higher.. As we pointed out yesterday, the chance is that the tech will recover some from the loss of last week.  

An article in CBS market watch provided some interesting insight as how do you know the market direction for the day,  the authored wrote if both GS and GOOG are up, you knew that the market is strong on the upside.  So, we are happy to report that even gs and good were up today.

Commodities is a different story.  there are fundamental reasons as why they are higher as we pointed out yesterday that they should.  there are imbance in the demand and supply.   and today's OPEC decision to not increase its production certainly played a bigger role.  Then, there are these momentum players, any dip is a buying opportunity.

All the major indexes are closer to the low end of the bound, thus, the odds still favor the market go higher from here.  so, let's see if this market can string two wins together