Friday, October 10, 2008

Guesstimates on October 10, 2008

Spiders - September S&P  E-mini Futures:  The e-minis dropped well past the 930-40 range late yesterday and reached the 873 level when trading in Asia began. This morning’s newspapers aptly describe the market situation as one of chaos and panic.  I think the e-minis will hit 860 this morning and then will start a rally to 1060. 

QQQ: The Q’s should find support at 29.50. 

TLT - December Bonds: I think a big drop is underway in the bonds. It should carry the market back to 111 or lower. 

December 10 Year Notes: The notes are now headed for the 110-111 zone. 

Euro-US Dollar: The trend has reached the 135 target level. A rally to 139 is the next likely development. 

Dollar-Yen: My revised 99.00 target has been reached. I think this market will stabilize and the yen will soon begin a big rally. Short term resistance is now at 104.00. 

XLE - OIH - USO – November Crude: Downside target is 75. Resistance above the market is at 93.00.    

GLD - December Gold: Gold still has resistance at 935.  I think gold will soon drop to 600. 

SLV - December Silver: Resistance is at 1390. Next downside target is 900.   

Google: Google should find support  near 315 after which a big rally can start.  

2 comments:

Anonymous said...

Looks like TODAY is the BIG DAY drop where everyone gets a ROYAL FLUSH!

Boy it looks ugly, but Carl could be right about his prediction!

Once again a decade lost of gains!

ex

Anonymous said...

Ex, it looks like you are indeed a novice trader. I told everyone that I saw lower prices coming...did I give specific trade recs? No, because as a CTA I can not give trading advice to non-clients. Th charts did indeed suggest that we were headed back to 2003 levels and the fundamentals did also. Maybe you should stop watching CNBC, Cramer and Kudlow and educate yourself. I have consistently stated that the earnings estimates are still too high and I also stated that the fact that the financials, home builders, and retailers had not made new lows but the broader markets had meant that prices would be going lower still. I also stated that I canceled my resting orders orders to go long at S&P 950 when the S&P sliced through 1000 like a knife through hot butter.
If everyone believes that the last bull run from '02-'07 was driven by sub-prime mortgages and easy credit, why wouldn't prices go back to '02-'03 levels? Many people will be cash and credit strapped for years to come. Many people that have had access to credit will no longer have it since the banks will be lending to only the most credit worthy. And finally the consumer will be tightening their belts since the majority of things we buy we can do without. The only surprising thing is how fast it has happened.
I suggest you learn what charts are because none that I had seen had indicated that higher prices were imminent or likely and I stated that over 2 weeks ago. Carl has a well archived blog so you can feel free to go back and review my statements. Oh and one last trader truism...trade the market you have...not the one you want.