Investing to Wealth

I think this rally will prove to be a trap eventually. The unknown is how much further this market can rally before resuming its slide. The technicals are painting a mixed picture. Volume pattern is bearish where as breadth is bullish. Most of the oversold condition has been worked off so the only thing that can support this market is good earnings but the reaction to earnings has been luke warm at best until now. I think SPX 1107 is the first hurdle that the market needs to overcome if it wants to continue the rally.

As for individual stocks, GOOG as a growth stock is done in my opinion. It has much more room to fall than rise. AAPL seems to be just bidding time to crater. Any rally due to tomorrow’s press conference to address the iPhone 4 issue or upcoming earnings is a selling opportunity in my opinion.