U.S. Stocks are set to open strongly to the upside this morning after China announced over the weekend it would relax the Yuan's fixed rate to the dollar. The implication is that the Chinese government is confident in the global economy going forward. Stocks are sharply higher as the Yuan has traded strongly, as are other Asian currencies, except for the Japanese Yen.
Meanwhile, banking sector analyst Meredith Whitney remains very bearish on the banks and the stock market overall.
It looks to me like we may be setting up for a solid follow through day to the upside, if this move can hold up. So far, the S&P 500 futures are trading up over 13 points ahead of the open, and the Dow Industrials are trading up over 110. Both indicate over 1% moves above Friday's close. If we end up with close to 2% gains on the day, then traders should adopt a more bullish stance.
Scott Cole
www.bestdaytradingstocks.com
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