Stocks Rally on G-20 news

U.S. Stocks followed up on a rally that started overseas on the back of news out of a G-20 meeting of finance ministers indicating that they are not ready to start pulling back on the liquidity they have been injecting in support of the global economy. The Dollar plunged and is testing its most recent lows again, after making a multi-week high just last week.

The result was a big rally across the board, which carried the Dow Jones Industrial Average to new bull market highs, over 10,200. Volume was moderately higher than the last couple of trading sessions.

Commodity prices rallied on the news, with oil prices up $2 and Gold rallying to new all time highs over $1,100.

Not surprisingly, we had some big individual stock moves, resulting in some nice day trades! The trade of the day was TRW. Along with the overall market, it gapped to the upside, and then followed through on its opening strength with continued strength in the first part of the trading day. Traders applying any type of opening range breakout strategy could just hop on board and ride the trend to a gain of at least $1.00 per share depending upon the entry price.



For intermediate term traders, you pretty much have to hop back on the train again on a session like today if you had gone to cash during the recent pullback. The market appears to be re-establishing its upside momentum, although there appears to be a narrowing of leadership, as smaller stocks are nowhere near the recent highs as gauged by the Russell 2000. However, now is not a time to apply much leverage.

Stay tuned!

Scott Cole www.bestdaytradingstocks.com