Thursday, December 6, 2007

Dow at Resistence


LONDON (MarketWatch) -- The Bank of England cut its key interest rate by a quarter-point Thursday to 5.5% after economic data in the previous couple of days showed a sharp slowdown in consumer confidence and in services sector growth.
The rate cut is the first since August 2005 and comes after five hikes since August 2006.

There inflation rate is 2.1%, and they don't cut fifty. English Fed is worried about inflation, that for me is a negative. The futures were up nicely this morning before the cut and FTSE was up over a percent, its given up most of those gains.

It was looking like a nice setup earlier as we would have opened through the resistance. Keeping a itchy trigger finger today, cause I am all in and long.

Protect Capital at all cost.

Posted by prudentstockinvestor M.D. at 8:03 AM

No comments:

Post a Comment

Subscribe to: Post Comments (Atom)

About Me: Disclaimer

$BPCOMP

$BPCOMP
Extremely Oversold

Regarding Chart: BPCOMQ

This is the lowest close seen in years, usually a sharp and violent rally follows these moves enhanced by short covering, this is no time to short and start making a shopping list.

Bear-ly Hangin" In dustrials

Bear-ly Hangin" In dustrials
Dow Graph: 11/20/07
The Dow looks like its fighting for its life here at the level. It's no surprise there was a vicious bounce off the trend line as shown in the chart. Unfortunately, the last time we had that five hundred point reversal day was caused by the Fed stepping in, there has to be a similar event that helps the market or there is more pain ahead. The Fed minutes said nothing the market really liked, we sold off hard and bounced back hard as we hit support. This was just a reflex rally we may have to get one more really painful selloff to get around 12500.