Strong Market as Banks, Utilities, Cyclicals, Defense and Energy are leading the averages. The Nasdaq which has been stronger then the broader market is red today. If we get some juice on the buy side in Tech Land, watch for a quick move to 7500 on the Dow and 790 on the SP 500. It looks to me that the broader markets are in much better shape then the Dow, which unfortunately has GE, BAC, C, GM, and AA in it.
The Dow needs a strong close above 7500 (November Low) to break its intermediate down trend. My guess is that the Dow wont break above 7500, as there is major resistance there.
Net Net...The SPX can trade to 790-800 in this move. Make sure you have your sell orders in at that level.
But again....this is just another "Bear Trap", as nothing really has changed in the Macro or Micro environment.
Random Thoughts-
1-OPEC agreed to keep output levels constant. Smart move to keep oil cheaper.
2-Barclay's selling I-Shares unit which is their structured products division.
3-BOFA needs to start selling assets to shore up balance sheet. Pieces of Merrill and NYSE Specialist operations need to be sold quickly. BOFA can bide some time here with these sales.
4-News that AIG paid out Billions of Treasury money to counter parties is not surprising. we all knew that AIG had built a CDS Hurricane. The treasury will never let AIG fail. Period!
5- Barnanke on 60 Minutes was interesting, He is more optimistic on economy then most. I tend to agree with him that things will look better at end of year.
6- The Treasury will have more information on removing toxic assets from bank balance sheets. There is absolutely no way this plan will get any traction, as the banks will not sell these at attractive prices to the treasury. The banks are still in fantasy island with regards to mark to market pricing, that is why they want this accounting standard thrown out.
Sports Note-
When did Denver QB Jay Cutler become either Tom Brady, Joe Montana, or even Eli Manning? This guy has some nerve to demand a trade. Jay Cutler would not have lasted a month as the NY Giants QB. The way the press murdered Eli Manning, and the way Eli handled the situation makes me respect Eli that much more.
How can Memphis not be a number 1 seed in the NCAA Tournament? In spite of John Calipari, they should win this year. Hopefully erase last years meltdown in the title game against Kansas. I am still very bitter about losing my pool at work last year as Calipari forgot to coach the final 90 seconds.
No amount of coaching would have helped those boys make the free throws at the end of the game last year. Rock Chalk Jayhawks!
ReplyDeleteYes. true...but where was Calipari when they needed to be coached the final seconds? Why not foul the Kansas player in the back court? In the front Court? No way Chalmers should be able to get off a three at that moment. No way! Why not call a time out and set up a play after the game was tied in regulation? People miss free throws, these are kids, but the coach lost this game for them. Calipari had the deer in the headlights look the last 25 seconds. It was quite simply the worst meltdown I have ever seen since Jana Novatna at Wimbledon.
ReplyDeleteNice call on the Dow and the 7500 Level. Where do you think the market goes from here. Nice Blog....keep it up..
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