Now Dow is down 125 points and seems to be moving higher. A lot of US stocks gap down at the open and stabilizes too. Some great stocks like Apple and Priceline is back in the Green after gapping down at the open. Apple is running to NEW HIGH again! Mastercard is filling its gap down and near its high of $440 now.
Like what I mentioned in the last article, I think FED did an excellent job in revealing the Poor non farm payroll report on Friday, which happens to be a Holiday. This delayed action cools down the selloff impact. Today, I did not see any panic happening. Instead I see accumulation of some stocks before their earnings.
Studying the Options volatility, Apple Call and Bank of America Call showing great volatility, which means people are buying their calls anticipating a beat in earnings. My Apple call option increase so much in volatility even though the stock did not increase much today.
Hence I feel although the Non farm payroll report is a great disappointment, April is the month we start to focus on Earnings. We just need to pick stocks with excellent fundamentals so that we would not be hurt by any downfall in the market.
In the afternoon, I think more stocks will recover its loss gapping down. I sense today, some traders make use of the gap down to enter instead of exiting!
If this upward momentum carries on till closing bell, 2moro US market has a Good chance of going up. Hence it is an opportunity to hold overnight position so that 2moro some stocks may gap up at the open.