09/01/08 Market Observations
Resistance: DJIA 11700 (1000DMA); SP500 1300 (1100DMA); NAZ 2425 (600DMA); NDX 1920 (400DMA)
Support: DJIA 11300 (1300DMA); SP500 1265 (1300DMA); NAZ 2350 (850DMA); NDX 1870 (525DMA)
SP500 1300, gap down 1296, fall to close 1283. NDX 1915, gap down 1895, dip to 1866, close 1872.
MON: On very tepid volume, 95% of SP500 stocks sold off, all 10 sectors declined at least 1%.
WEN: the lowest volume of 2008 as a durable goods headfake sparks a meritless & convictionless bounce in financials & homebuilders.
THU: stagflated GDP surprise got big applause from duped investors.
Today, Integrity Bank of Georgia closed by regulators.
Personal Income & Spending shows: incomes declined; largest spending drop in 4 years; largest price inflation in 17 years.
Rising unemployment, emasculated economy, falling stock and house prices and stricter lending rules = its only going to get uglier.
Three weeks ago: We maintain, this "chump pump" ends Aug 18th +/- 2 days.
10th straight NYSE session <1 million says this market has no legs.
Next week, schools back in, vacation ends, and the gloves come off. Happy Labor Day.
Often wrong, but never in doubt, this is the Nattering Naybob and you're not.
Support: DJIA 11300 (1300DMA); SP500 1265 (1300DMA); NAZ 2350 (850DMA); NDX 1870 (525DMA)
SP500 1300, gap down 1296, fall to close 1283. NDX 1915, gap down 1895, dip to 1866, close 1872.
MON: On very tepid volume, 95% of SP500 stocks sold off, all 10 sectors declined at least 1%.
WEN: the lowest volume of 2008 as a durable goods headfake sparks a meritless & convictionless bounce in financials & homebuilders.
THU: stagflated GDP surprise got big applause from duped investors.
Today, Integrity Bank of Georgia closed by regulators.
Personal Income & Spending shows: incomes declined; largest spending drop in 4 years; largest price inflation in 17 years.
Rising unemployment, emasculated economy, falling stock and house prices and stricter lending rules = its only going to get uglier.
Three weeks ago: We maintain, this "chump pump" ends Aug 18th +/- 2 days.
10th straight NYSE session <1 million says this market has no legs.
Next week, schools back in, vacation ends, and the gloves come off. Happy Labor Day.
Often wrong, but never in doubt, this is the Nattering Naybob and you're not.
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