Market Observations 12/19/08

Resistance: DJIA 8985 (3850DMA); SP500 955 (4500DMA); NAZ 1710 (4500DMA);NDX 1240 (4750DMA)

Support: DJIA 7495 (5100DMA); SP500 735 (6500DMA); NAZ 1295 (6500DMA); NDX 1045 (5800DMA)

SP500 open 887, rise 905, dip 883, close 888. NDX 1205, gap up 1219, dip 1210, rise 1235, close 1217.

FRI: Senate rejects automotive bailout; Fed may throw TARP over automakers. Fed purchases $3 billion of debt from Freddie; Fannie & FHLB.

MON: NY Empire State Index Dec -25.8; NAHB/WF Housing Index 9 all time low; Industrial Production Nov -0.8%; assembly rate lowest in 18 yrs.

TUE: Fed funds cut 75 bps 0.25%; Goldman Sachs principal investments net loss Q4 $3.6 billion. Record declines in Building Permits -15.6%; Housing Starts -19%.

WEN: Morgan Stanley -$2.2 billion Q4 loss; Regulators increase oversight of Citigroup due to financial status concerns.

THU: GE credit outlook lowered to negative. Continuing claims 4.38M as more benefits expire. Philadelphia Fed Dec -32.9 vs -39.3

FRI: BOJ cut to 0.1%; Detroit gets $17 billion bailout. Crude intraday low $32.4;

S&P lowered ratings and revised outlooks for Goldman Sachs; Wells Fargo; JPMorgan Chase; and Bank of America.

Often wrong, but never in doubt, this is the Nattering Naybob and you're not.

Comments