Friday, August 29, 2008

For Whom the Dell Tolls

Yesterday was the perfect storm for the Bulls.....Today is the perfect storm for the Bears.....

DELL blew their earnings and put the whammy on Tech stocks. Oil jumped back up on Hurricane concerns. Personal Income dropped in July, which shouldn't be that big a surprise, but it caught the Bulls off guard a little after they got fat and happy on the Durable Orders and GDP reports of the past two days. The final nail on the morning was that the Prices component, the PCE Deflator, rose by the most in 17 years, sparking inflation fears (although the drop in Oil prices and Spending should attenuate those fears). The only number that really surprised the market was Personal Income, but after several days of solid economic reports, the Bulls were hoping for better numbers out of Personal Income/Personal Spending.

7:35 am MT: The Naz gapped way down below yesterday's open. That puts the Naz at risk for a Kicking Pattern. The Dow and the SPX are holding above the critical areas of support for the current upswing this morning. The Naz is trying to bounce a little after a big gap down. This is an important area for the Naz. If it fades below the opening lows around 2,383 then it could drag the market down today. If it holds up, the Dow and SPX could rally into the green a bit, and perhaps finish the week on a bullish note.....
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4 comments:

  1. stevecAugust 29, 2008 at 7:12 AM

    Dwight, do you use or even believe in the pivot points with r1, r2 and s1, s2. I dont know the exact formula they use but what do you think of these? If you use them what is the formula to come up with them?

    Thanx.

    ps Would you use them on just the futures or could you use them on stocks too.

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  2. AnonymousAugust 29, 2008 at 7:55 AM

    Dwight: Great VC last night-appreciate you going in depth with the "potential" pivotal points in the market. Wishin' you a great weekend.
    Robert
    CANI_212

    ReplyDelete
  3. LaurieAugust 29, 2008 at 8:37 AM

    Dwight,

    Thanks for a very informative VC last night. I think all of us share the wish that you could be on every day (except maybe Friday, for me)!

    I picked up a couple of puts each on ADBE and BRCM. Maybe a mistake with volume so Lo-o-ow. I think it's going to be hard to get much movement today. Dwight, you're right. We need big money in the market speculating both ways. Have a great weekend, everyone!

    ReplyDelete
  4. LaurieAugust 30, 2008 at 6:06 AM

    Got out of BRCM .14 shy of target w/ a .15 profit. Holding ADBE over the weekend. We'll see how that goes.

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