Tuesday, September 04, 2007

Guesstimates on September 4, 8:50 am ET

Spiders - September S&P Futures: As long as the S&P’s stay above 1465 I shall expect a continuation of the rally into the 1500-10 zone (Spiders headed for 150-151). Once that zone is reached I think we shall see a move down into the 1400-25 range which will be followed by a big rally to new bull market highs.

QQQQ: The Q’s have been acting even stronger than the S&P and should hit 50 before a drop down to 47.50 develops. The bull market high so far is 50.66 and later this year the market should be trading well above that level.

TLT - September Bonds: The bonds still show no sign of weakness so I think this market will make it up to 113-00 before an extended drop starts. Meantime support beneath the market stands at 111-00. TLT has almost reached the 89.00 level and I think the next development will be a drop into the 80-81 range.

September 10 Year Notes: The notes have reached 109-28 resistance but still show no sign of weakness. I think that the market has a good shot at reaching the 110-16 level before the extended drop I have been expecting begins.

Euro-US Dollar: Resistance above the market still stands at 136.60. I think this market is headed to 126.00 and eventually lower than that.

Dollar-Yen: I no longer think the yen will drop below it 111.57 low. Resistance is at 117.20 and this next break should hold above the 112.00 level. Looking ahead several months I expect to see the 130 level late this year or early next.

XLE - OIH - USO – October Crude: The rally in crude will probably continue up to the 76.50 level before the market turns lower again. I think that the market will drop below 50.00 over the next 12 months. Both XLE and OIH are headed much lower. The 57.00 level looks like resistance in USO.

GLD - December Gold: Resistance above the market is at 683. I think gold has started a decline which will carry it to 500 and below.

SLV - December Silver: Resistance above the market is at 1245. Silver has started a drop which will carry it below 900 and SLV should drop below 90.

Google: I think support near 485 will hold and that a rally to 600 or higher will begin soon.

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