Hey folks hope you had a frightening Halloween just like the markets we have been having. As most of you have been reading on the blog I have been saying to lighten up on shorts because I believe we would soon see a bounce. Right now we are in bounce mode from extremely oversold conditions. There is a good shot we see 1060 area on the S&P and 10200 on the DOW, especially as we go into traditionally a bullish period of November and December.
One huge note on this upside move is the VOLUME. Volume has been anemic and must be watched carefully when we get a down day. Friday's action was very bullish as all pullback were bought and we grinded higher all day. Next week should be very bullish, with the only unknown being the election results which in my opinion is pricing in an Obama victory.
Levels to watch on the upside are 1000, 1020, 1052 on the S&P.
9500, 9875, 10200 on the DOW.
Let's see how far they want to push us and I am giving you a freebie here and now. BUY SKF on any trade in the $90's area. Also GOOGLE short on a push to $425 area, even though it looks very weak here even with the market bouncing.
I think this will set up nicely for traders here soon. I hope I am right!!
MARKETJEDI
Saturday, November 1, 2008
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