Tuesday, October 16, 2007

Guesstimates on October 16, 8:15 am ET

Spiders - December S&P Futures: Resistance above the market stands at 1567 (at 155.70 in the Spiders) and support is at is at 1538 in the futures and 152.80 in the Spiders. Once this reaction is complete I expect to see the futures rally to 1610.

QQQQ: The market will probably drop to 51.50 and then resume the bull market advance.

TLT - December Bonds: I think the bonds will head up into the 114-115 range. A break below the 110-00 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: Crude has entered the 86-87 resistance zone and I think the next significant move will be downward. The upside target for USO has been reached as has the 200-205 target for OIH. The 80 target for XLE has nearly been reached.

GLD - December Gold: December gold is heading for 800.

SLV - December Silver: It now looks like silver is headed back to 1500.

Google: I think that a rally to 705 is underway. Support is at 590.

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