GOOG and CAT fueled weekend rally on stock market!

GOOG and CAT both reported superior earnings last friday. GOOG kicked it off earlier by beating analyst expectation by $0.38. CAT followed through by showing wonderful earnings too. And market galloped it all, the Dow opened and surged to around +120 points directly from the start.

Shares of GOOG and CAT both gapped up fueled the market surge. Not forgetting also MCD that also contributed toward the rally by showing good earnings. However GOOG and MCD did not manage to go higher than their opening on Friday. Both stocks sinked slowly as trading hours went by. GOOG still managed to stay above Thursday's closing price, but MCD failed.
Stocks rally on Friday also fueled by the rally that Shanghai Composite did, Shanghai Composite almost erased most of Thursday loss. It's strange how the market gobbled up the positive news and ignored the negative news.

However I still reckon that we are very overbought and we are due to a pullback soon. Dow might closed on all time high but it is now facing a strong wall at the 13.000 points. A healthy correction is neccessary before we try to breakthough that levels.

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