Posted: Jan 27, 08 8:59am
I am sorry, but this site will not snapshots of my charts this week. For further discussion please go to:
http://tradewithpros.blogspot.com/
What a wild 3-day rally this week brought us. Market bottom? Not according to the trend. Although in 3 days we witnessed almost a 900-point swing off the lows, the downtrend is not broken. It would be nice to see some convincing buying and strong break above the short-term downtrend. As it stands now, none of the trends have changed.
Some estimates coming out about the subprime losses are staggering, almost 10 times worse than the official estimates. Prime mortgage losses at 2 trillion. Subprime losses over 1 trillion. Total mortgage bond losses over 3 trillion dollars. This does not even take into effect the loss in real estate equity and the combined effect this will have the global economy. If this is factual, more loosing days in the market are most likely ahead.
This week the FED meets and the market is hoping for a 50 basis point cut. Whether this even helps is yet so to be seen. So far rate reductions out of the FED have not shown to have a lasting effect. Remember, trade the trend and be safe.
DOW 30
Short Term Bearish – 12/16/07
Long Term Bearish – 11/16/07
The index pummeled down to around 11,500 and 4 days later is once again sitting right on top of the 2003 uptrend line. As stated last week, this position is key on the DOW. It is now sitting right on top of the 2003 uptrend. A break here moves the market deep into 11, 650. Nothing has changed in this position, the market opened right around both sides of support of 11,650 both days off the bounce. This trend is still down.
SPX – Standard and Poor’s 500
Short Term Bearish – 12/16/07
Long Term Bearish – 11/16/07
SPX has had much wilder moves than the DOW, with intraday swings way out measuring opening and closing values. This index remains under its 2003 uptrend. It has not broken the downtrend and remains bearish. Support and resistance values are still in play.
NASDAQ Composite (COMP)
Short Term Bearish – 12/16/07
Long Term Bearish – 1/06/08
The NASDAQ is still below its 2003 uptrend after a vain attempt on Friday to open above this important trendline. The index sits on support as of Fridays close at 2325. It had traded as low as the 2215 area. Next support is 2265 followed again by 2215. The trend remains down.
Russell 2000 Small Cap
Short Term Bearish – Before this Blog Started, 7/26/07
Long Term Bearish – 11/15/07
“pretty damaging bearish evidence.” That comes from last weeks market wrap. Nothing has changed in this index either. It traded right down to support at 655 and bounced with the other markets. Downtrend is intact. Remember that small caps usually lead the markets up and lead the markets down.
TradeWithPros was a huge hit at the World Money Show in London. The next appearance will be the TradersExpo in New York, Feb.16-19. Please visit www.newyorktradersexpo.com/ for more information. We met many wonderful traders and investors from around the globe in London and it would be great to meet you in New York!
We are strictly a source of information and not an investment advisor, market maker, promoter, broker, dealer or research service, nor do we represent or promise anything. Nothing should be deemed an offer for sale or solicitation of an offer to purchase any security. Investing in anything involves risks. We do not supply tax, legal or investment advice.
