Wednesday, October 11, 2006

Guesstimates on October 11, 8:50 am ET

December S&P Futures: Contrary to my expectation there as yet has been no follow through to yesterday’s late rally.  I don’t know what to make of this.  I am still confident that support below the market is in the 1351-53 zone and that the next rally will carry into the 1370-75 zone. I expect to see a 1400 print later this year.  

December Bonds: Resistance above the market is at 111-22. The bonds are now headed down into the 107-108 area.

December 10 Year Notes: The notes are now headed down to 105-16 or so.

Euro-US Dollar:  I think that the market is headed down to 124.50 and eventually much lower than that. Resistance today is at 126.25.

Dollar-Yen: I think the yen will rally a little more, say to 120.50, before a reaction of 150-200 pips starts. I expect to see the yen at 130 next year.

November Crude:  I think the market will rally to resistance near 65.00.  However I also expect to see crude trading in the 50-55 range sometime during the next 6 months.

December Gold: The market has turned definitely lower and is now headed below 550 and later below 500.

December Silver: Silver has made a top at 1155 yesterday and is now resuming its drop to below the 900 level.

Google:  Support is at 410 and I think GOOG will soon move above its all time high of 475.  

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