Tomorrow morning I will be pointing out where i think the market will go after todays turn around on news that the congress is planning on mortgage bailouts.
STAY TUNED!!!!!
Wednesday, January 23, 2008
Devious Scenario playing out
As noted this morning before the market open of a possible devious scenario has happened. It is pretty scary that the FED has no power and they shouldn't if they approach problems as such.
My targets on this downside have been on fire if I might toot my own horn. Google i said would retrace down to $550 level it is at $530 now, BIDU is said would be below $250 now it is $240 and APPLE i said would go to $165 then $150 is now at $128. Those are some huge moves. I was going to do a Market trade yesterday on MA (Mastercard) but didn't, i am sorry i didn't as MA is down $10 today.
I will update in a few as I see some plays i see setting up
My targets on this downside have been on fire if I might toot my own horn. Google i said would retrace down to $550 level it is at $530 now, BIDU is said would be below $250 now it is $240 and APPLE i said would go to $165 then $150 is now at $128. Those are some huge moves. I was going to do a Market trade yesterday on MA (Mastercard) but didn't, i am sorry i didn't as MA is down $10 today.
I will update in a few as I see some plays i see setting up
Devious Scenario
Well yesterday the market reacted how i expected on a huge gap down. The Market retraced over 350 point in the first hour but then we coiled in a very tight range from 11am till the close. The .75% cut might have saved us from dropping a whopping 1000 points, but my question is, was it all a one day wonder?
The most devious situation for us today would be for us to retrace down the 350 point we bounced yesterday and test the overnight lows of Monday. Wow that would cause serious panic and we would get a capitulation scenario where we could work on a much better base. I have no doubt we will bounce but I am 100% sure the lows of Monday futures will be tested and broken, yes broken, no way it holds if we test those lows. Just like I told many in 2004 that the housing market would crash and it would take 6 years to completely recover, I am saying the same here for the markets. No way we go down for 3 months and that's all the bear market has to offer when we were in a bull market for 4.5 years, just not logical. The problem with markets is that they dont go up or down in a straight line and we have counter moves in a larger trend.
APPLE posted some great numbers in my opinion but as usual Wall Street wanted more and are pushing our futures down this morning, also Motorola truly disappointed with sales and profits compared to last year, another signal that the consumer might be showing crack in disposable spending.
Lets see how the day plays out and hope the devious situation noted above doesn't play out for the investing public. Doesn't matter to me what happens because I am not an investor but a trader. Oil seem to be forming a bear flag on the daily chart and looks lower intermediate term, although I am oil bull long term, these are examples of counter trends within the longer trend.
Earnings season is upon us here and might save the market if some heavy weight companies report excellent earnings but I am not holding my breath on that!!!
The most devious situation for us today would be for us to retrace down the 350 point we bounced yesterday and test the overnight lows of Monday. Wow that would cause serious panic and we would get a capitulation scenario where we could work on a much better base. I have no doubt we will bounce but I am 100% sure the lows of Monday futures will be tested and broken, yes broken, no way it holds if we test those lows. Just like I told many in 2004 that the housing market would crash and it would take 6 years to completely recover, I am saying the same here for the markets. No way we go down for 3 months and that's all the bear market has to offer when we were in a bull market for 4.5 years, just not logical. The problem with markets is that they dont go up or down in a straight line and we have counter moves in a larger trend.
APPLE posted some great numbers in my opinion but as usual Wall Street wanted more and are pushing our futures down this morning, also Motorola truly disappointed with sales and profits compared to last year, another signal that the consumer might be showing crack in disposable spending.
Lets see how the day plays out and hope the devious situation noted above doesn't play out for the investing public. Doesn't matter to me what happens because I am not an investor but a trader. Oil seem to be forming a bear flag on the daily chart and looks lower intermediate term, although I am oil bull long term, these are examples of counter trends within the longer trend.
Earnings season is upon us here and might save the market if some heavy weight companies report excellent earnings but I am not holding my breath on that!!!
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