917

917 level to watch tomorrow on the S&P- if we can mount above that we are short term in bullish mode.

Financials

IF and I say IF, the scenario of higher price comes to reality as I think it might, watch the financials for some upside. YES they are dead but they WILL bounce if the market bounces. The great thing is that SKF will be cheaper to jump on. I hope they squeeze it down to 100 level as this would be another gift from the trading Gods.


Good luck this week

MARKETJEDI

Just a thought on this week

Futures just opened overnight and we look lower. A far cry from tomorrow morning but I would love to see us gap down for like the first part of the day then move higher. Watch 905 on the S&P, which is my first upside target tomorrow if we have an upside day, followed by 945. So a gap down would lead into a green day followed by a push into tuesday and possible wednesday which would be the peak for this cycle.
Who knows what will play out but that's what I would love to see. I definitely think with the black friday sales being better than expected the bulls will try to push us higher with some volume.


MARKETJEDI

Next week

Next week we should get some positive spin from the black friday retail sale. I have been reading and it seem that sales where up from last year which is very impressive because personally I thought sales would have been horrible. Monday most traders should be back by mid day and the true direction should show up by mid tuesday.
I am in the neutral camp here short term because most money managers will be rushing in desperately to make up for a horrible year.
I am 100% that 2009 will be a shocking year especially in the first two months which I firmly believe we will test new lows and test my 4000 area on the DOW later down but i digress. Next two weeks if we go higher I am looking for ultimate resistance at 1045 on the S&P and around 10300 on the DOW. I think it will take a miracle to pass those levels in the near future and will give traders an excellent spot to short the market. Early next week I am making a firm trade call before Tuesday which should be a winner, so stay tuned.

Also I am going to give you all a KILLER PLAY for your 401k. I understand many are down and out but tell your family and friends to play this one!!!!!!


MARKETJEDI

TECH Plays

With christmas around the corner, there is no doubt some tech stocks should be in play. Since I can't get a good handle on which one to play I rather play some shorts into resistance. My favorite one would be AAPL. A trade close to or above $115 I would buy the $100 puts on the following month.
I am just putting out some plays so many of you can watch, they are not in play till I give it as a trade call.


MARKETJEDI

TRADE CALL SET UP: SKF

Please note this is a set up and you must follow the play. Most of you know this is one of my favorite ultrashort to play. The troubling news out of the financials have abated for the time being but their will be more. I am going to play this again long if it breaks $110 and as usual I think $90 will be a shut your eye and buy.
I am expecting the DOW to at least test the 9000 level in the next 3 trading days and possibly get a blow off top soon, which should set us up nicely for the cycle lows I am calculating around January. Lets hope I am right because I would love nothing more than to start 09 with a bang.

Watch the US Dollar too as I believe it should also get a blow of top very very soon.

Upside Continues

The upside continues pre thanksgiving attributed to the light volume is my thesis.
I am here to affirm my all for DOW 4500 and even think 3000 is very very possible.
Here is the main problem:The Fed continues printing money wantonly, thus rendering the value of the dollar 50 to 80% less than where it currently is. Bernanke is on record as saying that if he was faced with Deflation, which is where we currently are, he would start printing money. The theory being that printing money would basically "level" the deflation by doing something inflationary (printing money is most certainly inflationary). Germany, and others, have tried this in the past (does anyone remember one definate reason why Nazi Germany was born?) and it's never succeeded. Frankly, I don't think it can succeed, BUT what it can do is give the illusion of wealth. Unfortunately this is why I rage against the machine, because its pretty safe to say that while prices of homes, and even the stock market could "stabilize" its illusionary and in fact the opposite.

Yesterday the FED PRINTED ANOTHER $800 Billion to help the consumer credit market. Where will it end the FED is basically printing money 36 hours a day :). I really think we will get over $20 Trillion when this is all over. Also I think their is a realistic possibility that the US Debt rating get downgraded in the next 3 months which would set up the treasury notes rising in yield thus starting the inflation cycle of the global slowdown.

I have one more thing to say about the appointment of the new treasury secretary by Obama. It is my feeling that because he is already a FED governor(New York branch), he will prove to be just as ineffective as Paulson. Listen up here folks the DOW ended @ 8700 today I think the most they can get out of this market is 10250, so we have 1700 point to go on the upside. Watch next week for 910 area with the possible cycle high coming in around 1023 area. That's it folks so if you long you better take profits if they big guys come in next week and think we should go higher.


Have a Great Thanksgiving