The bulls had their way again today. The Dow Jones Average closed up 175 points or 1.30% on Bush Plan for Mortgage Rates and also hopes for imagefurther rate cuts. It seems the concern over the housing slump is slowing fading away.

Looking at the daily chart of the Dow Jones it shows the index closed well above the 50ema which is positive but will now face a strong resistance ahead in the 13,700-14,000. Two scenarios are now in play, a sustained close above 14,000 could inspire a breakout of the all time high levels and a close below 13,000 would be a very BAD thing. Nobody knows what will happen, only Mr. Market… we shall respect it’s desire and play some very disciplined money management. image

My Portfolio

Excellent progress on my portfolio again today. No new or closed positions.

  • moved my stop on DAR to break even, good progress
  • trailing my stop on LH, no risk at this point (unless it gaps down)
  • raised my stop on BAM.A.TO to 34.17, good progress today

My PL went made a big jump from $ 3,580 yesterday to $8,587 today. Here is what my positions look like:
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Darling International (DAR) - up 15.4% since my entry on Nov 13.

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Companhia Vale do Rio Doce (RIO) looks ready to attack all time highs levels again.
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That’s it for tonight folks. Long day at work and ready to go sleep. Will do a sector review this weekend.