Market Observations 10/17/08
Resistance: DJIA 9835 (3250DMA); SP500 1040 (3850DMA); NAZ 1895 (3850DMA); NDX 1470 (3800DMA)
Support: DJIA 8215 (4400DMA); SP500 850 (5250DMA); NAZ 1575 (5000DMA); NDX 1200 (4900DMA)
SP500 947, gap down 942, dip to 918, rise to 984, fade to close 940. NDX 1312, gap down 1291, dip 1278, rise to 1367, fade to close 1311.
FRI: SP500 bounces from down 7.3% at today's low: SP500 -46% from its all time high.... a sucker rally or dead cat bounce is due.
MON: MEOW and how...DJIA largest point gain ever. Do not be fooled...
TUE, the cat slammed into SP500 1050 and fell on corporate profit concerns.
WEN, the largest decline since 1987. NDX 1130 could give another bounce on the way down to 975.
MON: Whats next? Lower profits, more layoffs, 8% unemployment; real negative GDP...
THU, VIX hit all time high of 81. UBS $65 billion bailout.
Builder confidence hits all time low at 14. Industrial production -2.8%; the largest decline since 1974. Philly Fed sank to -37.5, an 18 year low.
FRI, consumer confidence all time largest decline to 57.5; current conditions an all time low at 58.9.
Building permits -8.3% at 786K; SFR starts -12% at 544K; both hit a 27 year low.
Anyone who tells you this is the bottom or everything is going to be OK... is an idiot or a liar.
Much like the fallout from a nuclear war, our economic winter is just starting. Those who were "killed" at ground zero, were lucky.
The real test, survival of the fittest, starts now.
Often wrong, but never in doubt, this is the Nattering Naybob and you're not.
Support: DJIA 8215 (4400DMA); SP500 850 (5250DMA); NAZ 1575 (5000DMA); NDX 1200 (4900DMA)
SP500 947, gap down 942, dip to 918, rise to 984, fade to close 940. NDX 1312, gap down 1291, dip 1278, rise to 1367, fade to close 1311.
FRI: SP500 bounces from down 7.3% at today's low: SP500 -46% from its all time high.... a sucker rally or dead cat bounce is due.
MON: MEOW and how...DJIA largest point gain ever. Do not be fooled...
TUE, the cat slammed into SP500 1050 and fell on corporate profit concerns.
WEN, the largest decline since 1987. NDX 1130 could give another bounce on the way down to 975.
MON: Whats next? Lower profits, more layoffs, 8% unemployment; real negative GDP...
THU, VIX hit all time high of 81. UBS $65 billion bailout.
Builder confidence hits all time low at 14. Industrial production -2.8%; the largest decline since 1974. Philly Fed sank to -37.5, an 18 year low.
FRI, consumer confidence all time largest decline to 57.5; current conditions an all time low at 58.9.
Building permits -8.3% at 786K; SFR starts -12% at 544K; both hit a 27 year low.
Anyone who tells you this is the bottom or everything is going to be OK... is an idiot or a liar.
Much like the fallout from a nuclear war, our economic winter is just starting. Those who were "killed" at ground zero, were lucky.
The real test, survival of the fittest, starts now.
Often wrong, but never in doubt, this is the Nattering Naybob and you're not.
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