Market Observations 11/10/06
In our top story tonight, the leader of al-Qaida in Iraq, Abu Musab al-Zarqawi, is STILL dead and someone else has taken his place.
The elections passed with little fanfare as the Demos swept back into power for the first time since 1994, but everything is still going wavy gravy.
Gold $630 to $617 to $637, crude $58 to $61 to under $60, bonds DOWN 10 yr 4.75, then UP 4.57, and equities after the 1st 6 day selloff on the DJIA since June 2005, a bounce retesting new heights.
DJIA, OEX, TMWX, NAZ, NDX all sprung from 25DMA to make all time or multi year highs. SP500, RUT & MID are still waiting to go over the top. SP500 1405? NDX 1795? Its still possible by the 17th or 21st.
Last weeks MAX PAIN SP500 1362 was hit, the shakeout raised MP to 1372, which we came close to again in a small bull trap. This was setup by headfaking to test 1388, then failing and falling to support at 1375.
Is it a topping pattern with major consolidation downside? Or is it just another pullback before the next runup? We touched 1360 on the fall, if 1355 is breeched, the SP500 will retrace towards the 50DMA @ 1335.
If we break through 1390 decisively, the trip to 1405 should be rapid with a brief refueling stop, then perhaps 1430 awaits?
Reporting next week, TUES Retail Sales, DrHorton, Wal Mart, Target, FOMC Minutes; WEN: PPI, Business Inventories, NY Empire Index; THUR Dell, HP, Starbucks, CPI, Industrial Production, Philly Fed, NAHB Housing Index; FRI: Housing Starts, Building Permits
Keep it tween da ditches, we take it day by day and keep our eyes peeled to the sky, because it could be a name brand that pancakes us. Just my opinion, I could be wrong, this is The Nattering Naybob and your NOT!
The elections passed with little fanfare as the Demos swept back into power for the first time since 1994, but everything is still going wavy gravy.
Gold $630 to $617 to $637, crude $58 to $61 to under $60, bonds DOWN 10 yr 4.75, then UP 4.57, and equities after the 1st 6 day selloff on the DJIA since June 2005, a bounce retesting new heights.
DJIA, OEX, TMWX, NAZ, NDX all sprung from 25DMA to make all time or multi year highs. SP500, RUT & MID are still waiting to go over the top. SP500 1405? NDX 1795? Its still possible by the 17th or 21st.
Last weeks MAX PAIN SP500 1362 was hit, the shakeout raised MP to 1372, which we came close to again in a small bull trap. This was setup by headfaking to test 1388, then failing and falling to support at 1375.
Is it a topping pattern with major consolidation downside? Or is it just another pullback before the next runup? We touched 1360 on the fall, if 1355 is breeched, the SP500 will retrace towards the 50DMA @ 1335.
If we break through 1390 decisively, the trip to 1405 should be rapid with a brief refueling stop, then perhaps 1430 awaits?
Reporting next week, TUES Retail Sales, DrHorton, Wal Mart, Target, FOMC Minutes; WEN: PPI, Business Inventories, NY Empire Index; THUR Dell, HP, Starbucks, CPI, Industrial Production, Philly Fed, NAHB Housing Index; FRI: Housing Starts, Building Permits
Keep it tween da ditches, we take it day by day and keep our eyes peeled to the sky, because it could be a name brand that pancakes us. Just my opinion, I could be wrong, this is The Nattering Naybob and your NOT!
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