Friday, February 29, 2008

Guesstimates on February 29, 8:50 am ET

Spiders - March S&P E-mini Futures: I now believe this reaction will halt around 1345. From there the e-minis should resume their move into the 1430-50 range. In any case I think that the January 22 low at 1256 will hold.

QQQ: The Q’s are headed for 47.50.

TLT - June Bonds: Switching to the June contract which is trading a point below March. The market has rallied more than I expected but as long as June can hold 118-04 resistance I think that the next move will take it below 115. I think TLT will drop to 88.

June 10 Year Notes: Switching to the June contract which is trading 1-12 below March. Resistance is at 116-28 and I think that a drop below114 lies ahead.

Euro-US Dollar: The market has reached the 151.00 target. I think there will be a big break from this level and if I am right we soon should see prints below 149.00. If this doesn’t happen in the next couple of days then I will shift gears and start looking for a rally to 156.

Dollar-Yen: I think this break below 105.00 will find support in the 104.00-104.50 range and that a sustained rally is about to start.

XLE - OIH - USO – April Crude: The market closed well above resistance yesterday so I think it is now headed for 105-106.

GLD - April Gold: I think gold futures are headed for 1000. Support is at the 910 level in the April contract.

SLV - May Silver: Switching to the May contract which is trading about 10 cents over March. Silver has entered the 1900-2000 resistance range. I think that the market won’t move much above 2000 before it has a big break.

Google: I think the drop from the 747 high is nearly over. There is very strong support at 420 and my guess is that Google will make an important low near there and then begin a sustained up move. Meantime resistance is at 490.

2 comments:

Anonymous said...

Hi Carl,

I had been long from 1315.50 and took a second long at 1368.50 on a buy stop just last week; this gave me an average entry price of 1342.00 for both positions. I have just closed out both longs at 1354.00 for a total 24-point profit. I am now flat and will reassess the market if we rally from here.

I also placed a sell stop at 1330.50 for today only. This would give me a short position, and I will keep that short position, if filled, provided we close below 1330.90 today.

Thanks and have a great day.

PM

Anonymous said...

Hi Carl,

After reassessing the market, I reinstated my short position at 1328.50 in this evening’s session (Sunday evening); a close below 1331.00 on Monday will confirm this sell signal. If there is a confirmation, then I will remain short.

Thanks.

PM