Month: August 2007

Bears have been challenged today with news from the administration it will allow some guarantees on sub-prime loans. This effort along with liquidity measures by the Fed will allow the markets to continue to base. A test of the index’s August 8th highs and a successful close above them will confirm the 07 bottom. The…

Today’s action was mainly a NQ affair. Regardless of the market direction, their continues to be a play to buy the NQ over broader base averages and industrials. The relative strength view gives what appears to be an opportunity to buy an index some 50% off it’s 2000 highs. Whether the players are right does…

The DJI monthly July close was 13212 and marked the second consecutive monthly lower close after the May record close of 13627. During the break, only the monthly lows after April were taken out in contrast to the SP500 spot futures contract which violated every monthly 07 low except the lower spike of March. Last…

The DJI for the last four days is up a net 53 points. The point being, relatively large ranges and diminishing real volatility (VIX) indicate that the high/low ranges have for the most part been established. Now in this instance the ranges would be the lows of August 16th and the July highs.Market disappointment with…

Well two days and 330 points lower the market seems tired. Once again the DJI slid to close under 13162 and the other indexes SP500 and NQ lowered themselves into the support areas created starting back on August 10th. The bulls will hope tomorrow will finally bring in buyers who abide by the never buy…

The market staged a low volume pull back waiting for some kind of news to trade. Data will start to be released tomorrow which could have some impact with the volatility crowd hoping to recapture some panic. They will probably be disappointed but one can never discount the abilities of so many to flail about…

Indexes have built a first line base and have some measure of support on any corrections. The DJI, Sept SP500 and NQ100 look confirm a major bottom with closes over 13690, 1510.5, and 2006.75 which are the August 8th highs. If the market believes it has weathered the worst of the downside, there is plenty…

There have been generalized observations about the ‘ quant failures ‘ since the peak of downside volatility. The conversations basically revolve around the notion that all strategist were pointed the same direction. No doubt many brand name managers and their underlings got hammered, but in different strategies. The real problem was not that they all…

Yesterday the indexes held above key support areas. DJI’s 13162 remains the the critical swing. Volatility as measured by the VIX has taken a beating. However, if this market has doubts about the bull side trend, a test is most likely in the Thursday through Monday period.

Avoiding rally roll-over this week is needed to build both a base and the confidence that the worst of the break is over. Indexes are trying to chip an upside to see if there is hard rally room. The DJI and NQ still remain the strongest with the SP500 virtually flat on the year and…