Month: July 2008

There is a good chance tomorrow’s close will indicate direction for the balance of the trading year. Any long term bear trend the bears may have hoped for rests on tomorrow’s unemployment numbers. Awash in bale-outs and Fed interventions, the markets are sloshing around with enough cash to fix immediate problems, but raising cash may…

Market a bit ahead of itself yesterday given the data being released today and tomorrow. Indexes will settle back and wait for unemployment data which may be crucial in determining the whether or not a real base can be built upon previous downside action. A hard break on Friday would create some serious trouble for…

The bears, whose numbers are vast, have had to stomach two sessions of short covering and pricing. But let’s look at their strongest and weakest arguments about the direction down. Strongest- Not since the 1930’s has such contagious financial losses effected the bottom line in the bulge bracket sector. If confidence is the name of…

Stock indexes rejected Monday’s break and now have a target placed on last week’s highs. It will all come down to Friday action when the jobs number is released. A strong rally and close will confirm the worst is probably over for the year on the downside but yet leaving plenty of room for upside…

Reversal with better volume in the SP500 and NQ100 today as the DJI also turns around. Extreme bearish attitudes are the driving force that provide fuel for recoveries and are setting the stage for a test of the recent rally highs. The easy down is going to be a problem as mentioned before as the…

Dull morning after a decent down day as markets wait for various data releases. Bears need to keep the DJI, SP500, and NQ100 under last Friday’s lows, being 11325, 1249.25, and 1815.25 respectively, if they are to prevent an up leg test of recent rally highs. Given the end of the world analysis presented every…

Market moved lower again on moderate volume as the living dead were trotted out in the form financial stock woes and the pessimism of the IMF regarding the future of US housing. No one has ever cared what the IMF thought, but in a world of doubt, people would believe a talking dog. Merrill did…

Now the markets will see just how big the hole is in the side of the overall economy and whether the stimulus and relief packages will be enough to steady if not raise all boats. Bill Gross of Pimco, while not bullish on overall economic outlook, is on the other hand explaining the merits of…

Covering a bunch of down territory yesterday with unimpressive volume and the same old news regarding banks and the economy. Bears must not get too comfortable in this environment because the illiquid nature of price in ranges such as these can provide as much energy on the upside.

The repudiation break written about in the post Tactical Moves arrived today. Tomorrow will be of great interest as it will help determine whether or not today’s wide range sell-off is part of an expanded range bottom or part of a more dismal directional pattern. IBM’s strength and new eight year high could be the…