At the current economic malaise, Investors could hardly believe their eyes when they spotted it: a profitable bank.
U.S. stocks surged on the last session of a holiday-shortened week, and the major indexes completed their first five-week winning streak since October 2007 as Wells Fargo raised the novel prospect of quarterly net income. It expects about $3 billion in first-quarter profit, helped by its Wachovia purchase and demand for mortgage refinancing amid lower rates.
The Dow Jones Industrial Average rose 246.27 points, or 3.14%, to 8083.38, its biggest gain since March 23 and its highest close since Feb. 9.
The broad Standard & Poor's 500 index rose 31.4, or 3.81%, to 856.56, also posting its highest close since Feb. 9 while paring its losses for 2009 to 5.2%.
Both completed their first five-week winning streak since the week ended Oct. 12, 2007, around the peak of the last bull market.
USD/JPY held up well, as one would expect given the news flow but was unable to extend the topside very much. Word that Fitch may downgrade three big Japanese banks sent the pair to 100.55/58 but US selling capped it there.
In the early session, USDJPY showed strength that by Asian session open, prices has overcome yesterday high on expectation of Tokyo stocks bullish mood. Nikkei target to passed the 9000 mark. The Tokyo session may see some early interest but it is also expected to quieted down after lunch with many financial centres closed for the long Easter weekend a quiet day is anticipated across all markets.
Nikkei did open higher with USDJPY moving along, but technical indicators on 5 MTF USDJPY chart (lag indicators above 85, BB Macd moving flat and CCI 29 testing to cross the 30 sma and zero line) showed a oversold position with an expectation on prices pullback.
Started scanning USDJPY 1 MTF chart at 2:30 (23:30 GMT). Above there is three resistance levels-1. Daily R1-100.77 , 2. spud fibo 123.6 at 100.76 and 3. Last swing 200% retracement at 100.71.
USDJPY is expected to be weaker despite stronger Nikkei as there is a divergence in MACD and RSI(8) and the red lag is oscillating around the 85 level. At 3:02 a dark cloud cover candle is formed with a extreme level hook in CCI 21. Enter a sell position at 3:03 with target first at 60 ema and than at 200 ema.
At 3:35 enter a buy position on a extreme hook of CCI with blue lag approaching 15 and red lag going down below 15. With the two entries I achieved my 30 pips profit target for a session.
