Stock market surge

August 30, 2007

After getting positive global clues and growing cheerfulness among investor for further chances of interest rate cut by Fed and some strong support at level 13000, NASDAQ and Dow rose higher after previous day turmoil. Stock from many sectors took part to make the index rise higher by 247.44 points ending at 13,289.29. The broader S&P 500 index was up 31.04 points (2.19%) to 1,463.76. The technology heavy NASDAQ composite index rose 62.52 points to 2,563.16.

Previous day stock market CBoE volatility index, also considered as stock market fear gauge, drop significantly to 9.5% versus previous day of 16%.

According to me investors might take a breather at this point and will wait for any definitive clue to play with various factor affecting the stock market further, until then the stock market will move in a narrow range with any 50 to 100 point drop or 50 to 100 point rise from 13,2089 level. My today’s strategy will be as an “investor” I would wait and watch and would avoid buying but will keep my holding continue going on, and as a “trader” I will short the market at every 50 to 100 point higher level and will go long at lower level with any 50 to 100 points drop.