January crude is flying and comfortably trading above 10 and 20 dma's. That is the story and those of us who have been watching the weather patterns have been predicting this for some time. The low last week of 55.75 will probably not be revisited anytime soon, unless of course the economy slows to a crawl. That does not seem to be the case, ask any bond trader as yields keep rising on more fed rate hike anticipation. And they are right. The feds are targeting 4.75% at a minimum, if not 5%.
The weakest link is again, surprise, the DOW. It's the only one of the big three now trading below 10 day ema. Bears need to keep watching the NYSE as it relentlessly tries to get over the hump of March trendline resistance. Keep an eye on that one, 7760. As for NQ, those gaps below look like Swiss cheese and I still expect the one at 1676 to get filled. Watch 1685 weekly S1 support. QQQQ 42 is the battle zone, no doubt. INTC update on Thursday will be key. Optimism is high, I'm not sure we will sell much ahead of that. If we do, buy the gap fill.
The weakest link is again, surprise, the DOW. It's the only one of the big three now trading below 10 day ema. Bears need to keep watching the NYSE as it relentlessly tries to get over the hump of March trendline resistance. Keep an eye on that one, 7760. As for NQ, those gaps below look like Swiss cheese and I still expect the one at 1676 to get filled. Watch 1685 weekly S1 support. QQQQ 42 is the battle zone, no doubt. INTC update on Thursday will be key. Optimism is high, I'm not sure we will sell much ahead of that. If we do, buy the gap fill.
This entry was posted
on Monday, December 05, 2005 at 5:33 PM.
