Thursday, December 13, 2007

Pre-market Update

Futures are down big and we should open at about 70 points above the support level at the 13000 mark on the DOW (200DMA), this is a good point to lighten up on shorts and go long a little, and then sell any intra-day rally. Coincidentally, DXD ultrashort DOW ETF is at its primary upwave trendline resistance right at the open, if it breaks hard above 50, there will be more selling. However all this could change, all depends on the PPI and to a lesser degree on the Jobless claims.

The Bernanke strategy has backfired so far and until the market figures out what the FED is trying to do, stay away or stay short the DOW. I haven't really heard anyone except Brian Westbury come in support of the FED moves. Frankly, I don't understand what they did and the timing is an enigma to me.

Anyway, my job is to protect Capital at this point, and make small bets as I mentioned before.

Posted by prudentstockinvestor M.D. at 8:19 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.