Market Observations 11/02/07

Resistance: DJIA 13875; SP500 1550; NAZ 2860; NDX 2240
Support: DJIA 13440; SP500 1482; NAZ 2770; NDX 2180

Friday: NDX gap up 2196 to 2211, plunge to 2181, rise to close 2214. SP500 gap up 1508 to 1511, plunge to 1492, rise to close 1509.

This week dollar index caved to all time low, bonds jumped on a flight to safety, volatility surged, oil over $95 & gold over $800.

For quite a while: "Oct 31st will be a critical juncture for the market."

Tues: "Cut with tempered statement initially excites, then deflates as the cut is already priced in."

Thursday: "Long term, we sense the downside potential outweighs the upside, as 2nd cut history vis a vis 01/31/01 could repeat itself."

Yesterday: "PG penetration of 67 could mean the mustard is officially off the hot dog. Watch it closely." Rebounding today to 69.55.

Yesterday: "substantial penetration of SP500 75 DMA 1500 on a closing basis means we have only just begun."

Intraday low of 1492 went just past 75 DMA, but then the magic hand caught it. Have we turned the corner?

Potential for substantial penetration of 1485 to the downside looms large with options unwind, GM & Ford reporting mid week.

The other side of the coin: favorable reports could kick start us back up to new heights.

The WSJ reports: Citibank is expected to hold an emergency board meeting this weekend.

I'd like to be a fly on the wall. Write downs? SIV failures? Do ya think its another landmine waiting for Monday?

If we breech the number, 1445 SP500 & 2100 NDX awaits. Often wrong, but never in doubt, this is the Nattering Naybob and you're not!

Comments