Congratulations Treasury Secretary Geithner, It looks like your toxic asset plan may usher in a new bull market.
If the S&P 500 can get to 800 this week, it will mark a 20 percent advance from the 12-year low of 666.79, technically a bull market.
Even traders with their doubts about this toxic asset plan aren't letting their feelings of eventual doom get in the way of playing a bounce when it's given to them.
So what's the best way to play this Geithner Gallop?
"Typically, what goes down the most, rallies the most, and we think cyclicals remain well positioned to continue a rally," writes Mary Ann Bartels, Bank of America/Merrill Lynch Technical Research Analyst, in a note to clients this morning. "We believe technology is best positioned because this sector did hold its November lows. We also expect consumer discretionary and materials to rally."
Bartels, who I've followed for a while and knows her stuff, is encouraged by the strong volume we've seen during this comeback from the lows. She believes that means the market is at least in a "basing" process.
On the best opportunities in tech, the FM desk is watching Palm , with the upcoming summer release of its new 'Pre' phone, and Amazon , with the Kindle 2 released tomorrow. We'll get you the trades on those two tonight.
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