Tuesday, December 12, 2006

Guesstimates on December 12, 8:50 am ET

March S&P Futures: The market is now headed for support in the 1410-12 zone. From there it should rally to 1437-39.

March Bonds: The bonds should hold support near 113-04. The next development should be a rally to 116-00. After that rally a break of 5 points or so will become likely.

March 10 Year Notes: The notes should rally to 110-16. Support stands at 108-14.

Euro-Dollar: I still think that a move to 116 and lower has begun. Resistance above the market is now at 132.50.

Dollar-Yen: I think a move to 121 and ultimately to 130 has begun.

January Crude: Crude is trading a little below support at 61.50 but I still think the market is likely to rally into the 65.00-66.00 range before a substantial break begins.

February Gold: Gold should now rally to 662. Any weakness below 620 would cancel this prognosis and mean that an extended drop has begun.

March Silver: I think silver now is headed for 1450-1460. After that I shall be expecting a drop below 940.

Google: Last January’s top at 475 is now support and I expect Google to resume its rally to 564.

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