Market Observations 10/31/08
Resistance: DJIA 9300 (3600DMA); SP500 985 (4250DMA); NAZ 1775 (4250DMA); NDX 1350 (4250DMA)
Support: DJIA 7935 (4650DMA); SP500 840 (5400DMA); NAZ 1485 (5400DMA); NDX 1140 (5200DMA)
SP500 954, dip to 944, rise to 984, fade to close 969. NDX 1333, gap down 1318, dip to 1306, rise to 1358, fade to close 1334.
FRI: preopening stock index futures plunged to daily limit; which halts trading; Vix hit an all time high 89.
MON: 18 regional U.S. banks, including SunTrust & Capital One accepted $35 billion in government cash.
TUE: S&P/Case-Shiller home price index Yoy -16.6%, the fasted pace ever. Consumer confidence at an all time low.
The Fed bought $60 billion of frozen long term commercial paper... freeing up the money to be placed in other assets. The market surged 889 pts.
WEN: The Fed provides a $120 billion bailout to 4 other central banks & cuts 50bps to 1%. Durable orders ex transport -1.1%; ex defense capital goods -1.4%.
10/13: Whats next? Officially Negative GDP... THUR: GDP-Adv. Q3 GDP -0.3% vs +2.8%. Consumer spending -3.1%
FRI: Both personal income & spending -0.3%. JP Morgan will suspend foreclosures & modify $110 billion in mortgages.
Cash starved Barclays panhandling $12 billion from a group of Middle East investors. BOJ cut its unsecured overnight lending rate to 0.3% from 0.5%.
SP500 largest weekly % gain since 1974. Investors withdrew a record $70 billion from mutual funds in October as $10 Trillion was lost in global markets.
In 3 days, the Fed has bought $165 billion in CP.... that money was put into a massive short covering effort...do not be fooled, its another house of cards.
Often wrong, but never in doubt, this is the Nattering Naybob and you're not.
Support: DJIA 7935 (4650DMA); SP500 840 (5400DMA); NAZ 1485 (5400DMA); NDX 1140 (5200DMA)
SP500 954, dip to 944, rise to 984, fade to close 969. NDX 1333, gap down 1318, dip to 1306, rise to 1358, fade to close 1334.
FRI: preopening stock index futures plunged to daily limit; which halts trading; Vix hit an all time high 89.
MON: 18 regional U.S. banks, including SunTrust & Capital One accepted $35 billion in government cash.
TUE: S&P/Case-Shiller home price index Yoy -16.6%, the fasted pace ever. Consumer confidence at an all time low.
The Fed bought $60 billion of frozen long term commercial paper... freeing up the money to be placed in other assets. The market surged 889 pts.
WEN: The Fed provides a $120 billion bailout to 4 other central banks & cuts 50bps to 1%. Durable orders ex transport -1.1%; ex defense capital goods -1.4%.
10/13: Whats next? Officially Negative GDP... THUR: GDP-Adv. Q3 GDP -0.3% vs +2.8%. Consumer spending -3.1%
FRI: Both personal income & spending -0.3%. JP Morgan will suspend foreclosures & modify $110 billion in mortgages.
Cash starved Barclays panhandling $12 billion from a group of Middle East investors. BOJ cut its unsecured overnight lending rate to 0.3% from 0.5%.
SP500 largest weekly % gain since 1974. Investors withdrew a record $70 billion from mutual funds in October as $10 Trillion was lost in global markets.
In 3 days, the Fed has bought $165 billion in CP.... that money was put into a massive short covering effort...do not be fooled, its another house of cards.
Often wrong, but never in doubt, this is the Nattering Naybob and you're not.
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