Thursday, February 07, 2008

Guesstimates on February 7, 8:25 am ET

Spiders - March S&P E-mini Futures: Resistance today in the e-minis stands at 1340. The market will probably bounce from last week’s low at 1310.25 back up to resistance, but I think that we shall see a dip to 1290 or so before the second leg of the rally from the January 22 low of 1255.75 starts. In any case I think the January 22 low is going to hold and that in three or four months the average will be above the 1600 level.

QQQ: I think the Q’s are headed for 42.50 and then should rally to 47.50.

TLT - March Bonds: Support is at 118-00 but weakness below there will mean that the market has started and extended drop. Meantime I think the bonds still have a shot at the 2003 top of 123-03. TLT has nearly reached its 98.50 target.

March 10 Year Notes: The notes should encounter strong resistance at 120. Weakness below 115-08 will mean that the trend has turned downward.

Euro-US Dollar: I still think that the market is headed for 151 or so.

Dollar-Yen: I think the market is establishing an important low but another drop down into the 104-105 zone is likely before a sustained rally can begin.

XLE - OIH - USO – March Crude: It looks like March crude will soon drop below the 85.00 level and then the next support level is the short term target at 75.00. Resistance still stands at 95.00 but I no longer think it will be reached anytime soon. USO should drop to 56, OIH to 140 and XLE to 60 over the coming months.

GLD - April Gold: Switching to the April contract. I think gold futures are now headed for 1000. Support is at the 885 level in the April contract. Any weakness below 880 will mean that a drop to at least 750 has begun.

SLV - March Silver: I am raising my silver target to 1900-2000 to keep it in line with the gold target of 1000. Support still stands at 1500.

Google: Google is headed down to 450. Resistance above the market is at 515.

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