Spiders - December S&P E-mini Futures: The S&P’s should drop into the 850-75 zone before beginning a rally into the 1050-1100 zone. Resistance above the market today is again at 925.
QQQ: It now looks like the Q’s will drop to a new low near 27.50 before another rally can start.
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 headed for the 110-111 zone.
Euro-US Dollar: The euro has resistance at 135 and will probably be trading in the 122-135 range for a while.
Dollar-Yen: The yen has rallied as far as 100.55 but I think the market will move into the 101-102 range before starting another decline. The market rejected the 91 low decisively but the odds are that it will break to 89 before a rally well above the 100 level can start.
XLE - OIH - USO – December Crude: Crude is headed for 50.00 and resistance above the market stands at 70.00.
GLD - December Gold: I think gold will drop to 600. Resistance is at 775.
SLV - December Silver: Resistance above the market stands at 1125.
Google: Google has failed to hold support so I think it is now headed for 250-260.
9 comments:
Hi Carl,
I just covered my short position and went long at 877.00, this is an aggressive buy since I have no buy signal and my model is still short at the moment, but I suspect we're going to rally big time before the end of this month and not from much lower than where we are now. I may as well begin to scale in lightly.
Thanks.
Kindest regards,
PM
I would not be surprised to see the DOW drop another 2000 pts before its all said and done!
It is REALLY bad out there and I can't believe all this stuff happened without rules and regulations...
ex
Hi Carl,
I realize this entry is a bit late, but I did buy another at 867.00 and have an order to buy yet another at 857.00. We're in the basing area and getting ready for a significant rally. These markets are cheap, so I'm doing my Christmas shopping early.
Thanks.
Kindest regards,
PM
Agree PM.
Eur usd seems to be finding some support at 1.27. Given the stock market move, it was surprising that it did not go lower. (ie it was at the same level when spx was at 905 this morning. Thinking it is also basing. Same for usd zar.
Catherine
Hi Carl:
Do you think we have seen the low today? (ES 863?)
Your blog is appreciated.
Rick B.
Carl,
I think we are heading for new lows... I cannot see a multi month rally happening... too much blood in the street and we still havent capitulated!
ex
Hi Carl,
Well, I have my third buy, now long at 857.00, for what it's worth. Long a total of three at an average price of 867.00. I'm satisfied for today.
I don't expect to buy the bottom tick, but I think we're basing nicely here, and if we drop significantly lower, then I'll just add more. Three mini contracts represents a small portfolio and only a small percentage of my seasonal purchase.
Thanks.
Kindest regards,
PM
Carl,
We got the drop you predicted. Why didn't you short and make some change?
When Goldman and Morgan Stanley go down, will be the final capitulation. Neither can raise sufficient deposits on their own now that they are commercial banks. The other scenario will be a Gold & Citibank merger which will lead to alot of layoffs..
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