Tuesday, July 18, 2006

Watching 10,660

The area is green represents major support for the Dow Jones Industrial Average.


If it breaks below 10,660, it's party time, bears. Even I am surprised how flaccid this "bounce" is. YHOO reports after hours. That's bound to give us some fodder for either direction.

12 comments:

TryumphTrader said...

I thought Goog announced on the 20th?? several sources list this date.. It's been my experince that these two move simularly based on earnings reactions. We'll see if this can continue to hold true.

Anonymous said...

The strong action from around 2 PM today is pretty surprising. I think INTC had a lot to do with it, although all of the indices moved up in the same manner throughout the afternoon.

The S&P turnaround really was pretty amazing. But think about this: when the S&P can erase a 15-point decline in less than 2 hours with no real market-moving news, there's something seriously wrong with the trading action.

Maybe this is the "rally" that the bears have been waiting for. A nice 200-point rise this week could make for some nice shorting opportunities.

-Tony

dsantos said...

Hmm... I don't like the market today. I stepped out to sit on the sidelines. The DJIA is up 45 points and most of my screen is red. I don't have the breadth numbers up, but I bet they are pretty morbid. Don't trust this much at all...

bsi87 said...

The indices reversed at the bottom of the range, meaning close short positions at minimum IMO. And look for some ST long positions. JMO.

Anonymous said...

bsi: any recommendations (longs)??


O&G services has been beaten up pretty badly the last couple of days. Some downgrades and the price of oil has really cut into their share prices, but their business is still pretty solid. I'd go long-term long on them if the overall market was in a better mood.

Anonymous said...

Interesting to see that GOOG was down today when the markets finished up.... I'm betting against GOogle.... and Amazon....

PB said...

as expected, the stoopid bulls stepped-in! Thank-you bulls!! 11k on the DOW is where we will top out if we're lucky. But this will just be an opportunity to "double-up" on shorts ... 9900 on the DOW before year end looks more and more likely. Enjoy the ride!

Anonymous said...

YHOO just reported earnings in-line. However, they lowered forward revenue estimates. They're down over 7% in after hours.

GOOG fell $11.00 in sympathy with YHOO's report.

If the market was counting on those earnings to boost the outlook, it could get ugly tomorrow.

Shawn M. said...

I could use a bounce in the markets by friday. Sold ACI 37.5 puts against buying the 35 puts last Thursday with ACI at 38.00. Now at 35.50. Need to reach 36.5ish to break even. 37.5 full profit. 35 full loss. Tight play even for 6 trading days.

bsi87 said...

anon:

Too late to buy most things. Had to start accumulating yesterday and this morning. I bought some high beta stocks whose Max pain option strike is much higher than current price. Also bought some of the Proshare stuff.

re:10660. If you saw that break AND close below that level on higher than average volume, that would confirm the bear move. As it is, it shows the power of the bulls/big boys to run counter programs.

bsi87 said...

re: YHOO.

It needs to break and close below 28.60 on heavy volume. Otherwise it's gonna set up and bounce since it's near the bottom of the 20 day Bollinger Band.

downosedive said...

All, this little misguide rally will go to about 10925ish - look at Tims graph where he dreww the green line suport area and you can see every time the market bounced the initial rally took it back up to this level as a minimum. Of course after hitting that level it either fell back again or continued climbing. My point is this - surely this is a dead cetain up bet, no fail?? It would also reconfirm what many have said here - the typical bear rally before decisively taking the trend lower through that nasty 10660/10700 support level.