Market Observations 12/21/06
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.
Chipsters Jabil Circuit and PMC Sierra both punished on lowered forward guidance and a downgrade...
Earlier this month, Texas Instruments, Xilinx and Altera lowered their financial projections as well. Micron Technology & Research In Motion will report quarterly earnings after the bell.
Bad micro and macro news, slowing economy, manufacturing and housing, along with Fed head Lackers statement "weakness in housing will continue to be a drag on overall economic activity into the first half of next year" pushed the market down.
Gold floating at $620, crude down 1.7% on potential for lower demand but still @ $63 and bonds up big on lower interest rate hopes, 10 yr yield pushed down to 4.55.
This week, NAZ over the hump at 2470 then falling. NDX after hitting resistance at 1820, catching support at 50 DMA 1760 twice. DJIA made new all time high but hit resistance at 12,500, RUT hit resistance at 800.
Last weeks short covering surge should be replaced with year end window dressing. Since Fri some healthy sideways consolidation. Two pullbacks to SP500 1415 might just give enough energy to spurt to 1440 next week.
A bad sign, DJTA has plunged and is sitting on 100DMA, SOXX cut through 50 DMA. Any further decline in these two coupled with a rapid descent through SP500 50DMA support 1395 on higher volume should be viewed as a very large red exit sign.
The VIX has perked up a bit, and thats a healthy sign. We still see 1440, NDX 1860 and RUT 832 as possible, although the potential that we have already topped, and the worst is yet to come after New Year still looms.
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!
Chipsters Jabil Circuit and PMC Sierra both punished on lowered forward guidance and a downgrade...
Earlier this month, Texas Instruments, Xilinx and Altera lowered their financial projections as well. Micron Technology & Research In Motion will report quarterly earnings after the bell.
Bad micro and macro news, slowing economy, manufacturing and housing, along with Fed head Lackers statement "weakness in housing will continue to be a drag on overall economic activity into the first half of next year" pushed the market down.
Gold floating at $620, crude down 1.7% on potential for lower demand but still @ $63 and bonds up big on lower interest rate hopes, 10 yr yield pushed down to 4.55.
This week, NAZ over the hump at 2470 then falling. NDX after hitting resistance at 1820, catching support at 50 DMA 1760 twice. DJIA made new all time high but hit resistance at 12,500, RUT hit resistance at 800.
Last weeks short covering surge should be replaced with year end window dressing. Since Fri some healthy sideways consolidation. Two pullbacks to SP500 1415 might just give enough energy to spurt to 1440 next week.
A bad sign, DJTA has plunged and is sitting on 100DMA, SOXX cut through 50 DMA. Any further decline in these two coupled with a rapid descent through SP500 50DMA support 1395 on higher volume should be viewed as a very large red exit sign.
The VIX has perked up a bit, and thats a healthy sign. We still see 1440, NDX 1860 and RUT 832 as possible, although the potential that we have already topped, and the worst is yet to come after New Year still looms.
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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