Market Observations 08/01/08
Resistance: DJIA 11750 (950DMA); SP500 1300 (1100DMA); NAZ 2360 (800DMA); NDX 1870 (500DMA)
Support: DJIA 11250 (1300DMA); SP500 1230 (1400DMA); NAZ 2250 (1100DMA); NDX 1825 (600DMA)
SP500 1270, drop to 1254, bounce to close 1260. NDX 1849, drop to 1806, bounce to close 1826.
07/17: We repeat, this is a "chump jump". Cavaet emptor.
MON: Repeling from resistance NDX 1850; SP500 1260.
THU: Oscillating around these magnetic levels.
The current head fake is drifting up slowly, the kiss of death...
Cramer acting like Kramer... ripping up a bear and declaring a bottom... while neither Greenspan, Sinai nor Feldstein can see a bottom...
Yet to be priced in... the reality of poor macro economic and earnings news; and the true extent of downside risk.
We expect the current dead cat bounce to end around Aug 18th... two words: Get ready.
We sense, on the horizon... a market event which will require emergency Fed and congressional action.
Plunging this dead man walking to new depths. Remember, although we are in a liquidity trap, liquidity is not the issue.
Contrary to the bankers new math accounting, debt is not an asset, it is unpaid debt,
and in a leveraged debt based system, when debt cannot be serviced nor sold at any price... solvency becomes a major problem.
Often wrong, but never in doubt, this is the Nattering Naybob and you're not.
Support: DJIA 11250 (1300DMA); SP500 1230 (1400DMA); NAZ 2250 (1100DMA); NDX 1825 (600DMA)
SP500 1270, drop to 1254, bounce to close 1260. NDX 1849, drop to 1806, bounce to close 1826.
07/17: We repeat, this is a "chump jump". Cavaet emptor.
MON: Repeling from resistance NDX 1850; SP500 1260.
THU: Oscillating around these magnetic levels.
The current head fake is drifting up slowly, the kiss of death...
Cramer acting like Kramer... ripping up a bear and declaring a bottom... while neither Greenspan, Sinai nor Feldstein can see a bottom...
Yet to be priced in... the reality of poor macro economic and earnings news; and the true extent of downside risk.
We expect the current dead cat bounce to end around Aug 18th... two words: Get ready.
We sense, on the horizon... a market event which will require emergency Fed and congressional action.
Plunging this dead man walking to new depths. Remember, although we are in a liquidity trap, liquidity is not the issue.
Contrary to the bankers new math accounting, debt is not an asset, it is unpaid debt,
and in a leveraged debt based system, when debt cannot be serviced nor sold at any price... solvency becomes a major problem.
Often wrong, but never in doubt, this is the Nattering Naybob and you're not.
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