The weekly oscillation in global stock markets continued last week with stocks reversing the prior week’s losses and finishing up strong.   Korea continued its strong rally up almost 2.70 percent.   In the U.S.,  the Nasdaq lead the way up 2.01 percent with a big short killing reversal in Apple, up over 7 percent,  and strength from the semiconductors, up 4.10%.

The markets were bolstered by the continuing decline in the dollar, which is now down over 6 percent for the year.    Earnings and the Fed with Chairman Bernanke’s first post meeting press conference will be the dominate drivers of the U.S. markets this week.  We expect  the noise from the regulators pounding on speculators to heat up.

We’re keeping it lite and going with the flow as the market is right at resistance.  Taking down some cheap vol and waiting for a close above 1345-1350 on the S&P 500 as a signal of the next leg up.  You know our schtick: staying on the island of game changing tech, while dodging and monitoring the flock of macro swans.   Good luck out there!

(click here if charts are not observable)