Monday, February 25, 2008
Where to Next?
Well I've had a week off from the SPX, only keeping an occasional sleepy eye on whats happening and am now raring to go!!
Problem is what to do. These markets are still moving and we still don't like the down side. My own view is we are in a bear market....but we trade 30 day time frames and short term things can move up or down.
For all you techinical taders out there the charts are showing that the SPX is making both higher lows and lower highs. It will have to break out of this pattern soon and when it does that will determine where the SPX is next headed over the next few weeks. On Friday the SPX was down huge (over 18 points) for most of the day and I was beginning to think that down was the next direction.
However news that a bailout of Ambac (ABK) could come as soon as early next week lifted the markets greatly and this reverse declined and the SPX finished up 10.58 points closing at 1,353.11.
We still have expensive oil out there with oil near $100.
Also this week will be highlighted by economic data including reports on producer prices, durable goods orders, GDP and personal income and outlays. This data will provide more information on the economy and inflation, which could help us get a feel for what the Fed is likely to do between now and the FOMC meeting on March 18.
As soon as we see a nice play we will be in...but we won't be rushing.
Until next time.
Problem is what to do. These markets are still moving and we still don't like the down side. My own view is we are in a bear market....but we trade 30 day time frames and short term things can move up or down.
For all you techinical taders out there the charts are showing that the SPX is making both higher lows and lower highs. It will have to break out of this pattern soon and when it does that will determine where the SPX is next headed over the next few weeks. On Friday the SPX was down huge (over 18 points) for most of the day and I was beginning to think that down was the next direction.
However news that a bailout of Ambac (ABK) could come as soon as early next week lifted the markets greatly and this reverse declined and the SPX finished up 10.58 points closing at 1,353.11.
We still have expensive oil out there with oil near $100.
Also this week will be highlighted by economic data including reports on producer prices, durable goods orders, GDP and personal income and outlays. This data will provide more information on the economy and inflation, which could help us get a feel for what the Fed is likely to do between now and the FOMC meeting on March 18.
As soon as we see a nice play we will be in...but we won't be rushing.
Until next time.
# posted by Paul @ 5:35 AM 
