SPY 135 October strike pc ratio .38, QQQQ 42 strike .35. SPX is right at 1350 and QQQQ is still .70 away from the 42 strike, I would put more faith in an NQ/QQQQ upside move here. Nevertheless, the pendulum has shifted to call resistance now. But I have a possible upside target for SPX at 1367/1367 if we hold above 1340.50. Crude oil has found a bid again, this time with a real OPEC cut announcement. Resistance there is 60.60, support is 59.
There is still some skepticism out there, so the rally could press on now that we have had some breakouts, but small caps and semis still lagging. That has not bothered bulls the past few weeks, but expect some distibution at some point. The market remains a buy on pullbacks as long as NQ stays above its 10 DMA. This is the disbelief stage of the rally now that bears could not press on when they had a chance.
As a reminder, earnings season has not even started and big caps are pricing in glory days. It remains to be seen if they will deliver already lowered forecasts. There seems to be an unseen hand supporting stocks ahead of the elections, so if you are shorting remember that markets can remain irrational longer than you can stay solvent. If you want to short, make sure you hit bounces and not drops or you will get hurt.
There is still some skepticism out there, so the rally could press on now that we have had some breakouts, but small caps and semis still lagging. That has not bothered bulls the past few weeks, but expect some distibution at some point. The market remains a buy on pullbacks as long as NQ stays above its 10 DMA. This is the disbelief stage of the rally now that bears could not press on when they had a chance.
As a reminder, earnings season has not even started and big caps are pricing in glory days. It remains to be seen if they will deliver already lowered forecasts. There seems to be an unseen hand supporting stocks ahead of the elections, so if you are shorting remember that markets can remain irrational longer than you can stay solvent. If you want to short, make sure you hit bounces and not drops or you will get hurt.
This entry was posted
on Wednesday, October 04, 2006 at 10:57 PM.
