8.19.2008

THE OPEN


Markets are again weak and the 1255 objective on the SPX is getting closer and closer- the DJIA -100, NAZ -21 and SPX -10 at 1269.


Strong sectors- oils, utils and metals while gaming, banks, financials and real estate lag.


NYSE- 1550 net losers;

NAZ- 1210 net losers;

NDX- 20 GREEN;

OEX- 20 GREEN;

DJIA -4 GREEN CVX XOM JNJ AA;


VIX- higher by 5% at/near the 22 level;


Down volume 4X the up;


Looks like another ugly day and my 1255 target on SPX seems to be just around the corner- however not the "relative" jig in AAPL and GS- both green. All the other financials down between 1 and 4%.


I suggest that the bottom callers in financials read this article- makes sense- why would financials bottom if they are leveraged to real estate- and if that falls another 10% aren't they doomed?


If you want to daytrade, keep this in the back of your head- markets that are weak all day tend to close at/near their lows.




4 Comments:

Blogger tamworth said...

Well, until the $bkx closes below 46.52...and goes down from there....I wouldn't say the financials are going "much lower."

We may get a retest of the S&P..which I'm "hoping" for...

The NDX doesn't look like it will make it down to "retest" levels.

My humble opinion.

;)

10:47 AM  
Blogger itrade4real said...

Well said, and I commend you on keeping emotions out of the decision making process.

I am flat stocks, but this is bear market action. I'll be light in equities (long or short) until August is done.

11:07 AM  
Blogger DAVID said...

Not sure what will happen with the BKX - but my guess is some of the banks that go away will surprise you - not today, tomorrow or next month but 12/18 months- the banks virtually own real estate - and its leveraged - so another drop lower sends some down the tubes.

12:05 PM  
Blogger tamworth said...

Yep, we're gonna see a selloff here and not a bad idea to be out through August or longer...just watch the charts..

Yep, David..agree...it's just that the question is ...how much has been priced in?

We shall see.

I do see a possible retest on the snp...we'll just have to watch...

12:12 PM  

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