Tuesday, October 09, 2007

Guesstimates on October 9, 8:30 am ET

Spiders - December S&P Futures: Next upside target is 1600 in the futures and 159.00 in the Spiders. Short term support is at 1538 in the futures and 152.70 in the Spiders.

QQQQ: Continuation up to 54.50 is likely before a reaction of a couple of points begins.

TLT - December Bonds: I think the bonds will head up into the 114-115 range. A break below the 110-08 level will mean I am wrong and that the market has resumed its drop to 105-106. TLT should rally back to 90.

December 10 Year Notes: It now looks like the notes will rally to 111-08 or so before a more substantial drop develops. Support is at 108-16.

Euro-US Dollar: Support beneath the market stands at 140.50. The historical high in the euro is 145.75 which was reached in 1992. My best guess is that the market will take a peek above there, probably hitting 146.00 and that this will be followed by a multi-month drop.

Dollar-Yen: Support in the yen is at 115.00. Looking ahead several months I expect to see the 130 level during the next 12 months.

XLE - OIH - USO – November Crude: Support in crude oil is at 79.00 and I think crude will move up into the 86-87 zone before turning lower. The upside target for USO is now 64. I expect OIH to rally into the 200-205 zone and ELE to hit 80.

GLD - December Gold: Gold has bounced off of the zone of strong resistance in the 750-55 range and should soon start an extended decline. This breakout to new bull market highs is one that should be faded.

SLV - December Silver: Silver will probably stay below 1405. The start of an extended drop is near.

Google: I think that a rally to 650 or higher is underway.

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