Wednesday, August 29, 2007
Quick Alert: Fading
With the DOW weakening, expect the bears to press their bets, with an attempt to "bring it all down," by the end of trading.
Already, many of the DOW components are being picked off, which include DD, AIG, JPM, AXP, KO and C.
Thus far, the nasdaq has faired better, but stay on alert for key reversals in stocks like AMZN, RIMM, AAPL and GRMN.
In short, the underpinnings of today's rally still look robust, but thanks to the banking fools; the sellers are attempting to run down key DOW stocks.
My best guess, the sellers lose and we close near the highs of the day. Tech is too strong to break, today.
Already, many of the DOW components are being picked off, which include DD, AIG, JPM, AXP, KO and C.
Thus far, the nasdaq has faired better, but stay on alert for key reversals in stocks like AMZN, RIMM, AAPL and GRMN.
In short, the underpinnings of today's rally still look robust, but thanks to the banking fools; the sellers are attempting to run down key DOW stocks.
My best guess, the sellers lose and we close near the highs of the day. Tech is too strong to break, today.
Comments:
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I can't see how the US avoids a recession. Trade accordingly...
Try FX, it's a much better market ;)
http://throughtheswings.blogspot.com/
Try FX, it's a much better market ;)
http://throughtheswings.blogspot.com/
Agreed.
However, how will it affect equities, considering the vast amounts of business that is derived from abroad?
A much different market today, than 7 years ago.
However, how will it affect equities, considering the vast amounts of business that is derived from abroad?
A much different market today, than 7 years ago.
good question, if I only could figure out how exactly sovereign wealth funds will impact equity markets. Already, a couple of massive deals have been announced and these guys (Arab nations and Norway) don't give damn about timing, I guess.
How strange would it be if the economy fell into recession and stocks didn't get clobbered? Ed Hyman says it gets worse, but no recession.
BTW, push John Bogle down a bunch of stairs the next time you see him.
BTW, push John Bogle down a bunch of stairs the next time you see him.
Recession?...Here's a comment from mining giant BHP regarding their global outlook:
"Recent discussions with our customers have indicated that they do not expect the volatility in the U.S. and European credit markets to have a material impact on raw material demand. In particular, our customers in China and India believe domestic supply and demand criteria are much more important factors in their markets. Currencies of resource-rich countries should continue to be strong relative to the U.S. dollar, impacting commodity prices in U.S. dollar terms. Major non-U.S. consumer countries like China are likely to be able to absorb these higher prices as their currencies have also strengthened against the U.S. dollar and prices are likely to stay high relative to historical levels, albeit with increased volatility."
Trade accordingly.
"Recent discussions with our customers have indicated that they do not expect the volatility in the U.S. and European credit markets to have a material impact on raw material demand. In particular, our customers in China and India believe domestic supply and demand criteria are much more important factors in their markets. Currencies of resource-rich countries should continue to be strong relative to the U.S. dollar, impacting commodity prices in U.S. dollar terms. Major non-U.S. consumer countries like China are likely to be able to absorb these higher prices as their currencies have also strengthened against the U.S. dollar and prices are likely to stay high relative to historical levels, albeit with increased volatility."
Trade accordingly.
stockhead, what else would he say? would you expect him to come out and recommend a short position in his stock
It's not all doom and gloom everywhere---that's my point.
People always go to extremes--bulls and bears.
There's is a balance in there somewhere.
"Reversion to the mean" is a valid concept that you can make money on.
People always go to extremes--bulls and bears.
There's is a balance in there somewhere.
"Reversion to the mean" is a valid concept that you can make money on.
generally speaking i do not like BB's...however, if the bands are tightening i use them to gauge an entry point
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