If you look back last few days have been quite hectic in the marekts we have been testing the 1367 support and have made higher lows on key indicators like NDX, apart from pre-mature celeberations of markets breaking and other non-sensical stuff we are back to 1318 above that major support of 1310, now it looks that all that noise of last two to three weeks aand post Balmer sell off was nothing more than a correction within a bull trend. I can live with this as I maintained my view that 'please don't get carried away all this is a part of a well organised selling and testing of supports, now for me this is only one calose and we need a second close above 1310 to confirm that break out is clear and we have seen the lows of this correction, I will like to keep a sell at 1313 on SPZ and a buy at 1296 area in my opinion I would ideally like that gap between 1296-99 that is Friday close and monday opening to be filled, my opinions on AG or Fed for that matter remain the same..like last Friday and Thursday.. Friday, Oct 1 1999 4:29PM ET
Reply # of 29109
They were runing some stops below 1280 and they turned around exactly at my 2360 NDX point, so actually we have seen three tests of 2355 2360 and 2360 again today, they have tried to punch the hole through 2360 but were unable same with 1280, so now if AG is smart I doubt, he would raise the rates for simple reason asset inflation is out of the door, we are only 3% (now 4%) up on SPZ from the beginning of the year and index funds have really lost a lot, if the purpose of this rate hikes is to have some kind contained 'asset pricing' the policy that Bank of England is also following to tame the prices of the housing sector, AG has succeeded to tame the markets, we have 'three quarters of good earnings' behind us since we last broke 10000 on DOW, this is the pourpose of AG to tame asset inflation he needs to get earnings behind the valuation nad if you look at it for last nine months that exactly he has been doing bringing down the 'expectations' so now that we have got DOW under control and BRK.A down 23%, I would assume that based on manufacturing alone the rate hike will not materialise if it does the market may break 1267 and test 1250 but will rebound as uncertainity is out and cororate earning seasons descends on the market.
The multiples look dear but take this NDX 100 out of the equation of P/E multiples and the whole thing looks so absurd or undervalue. we have not been able to break the 1350 strangle hold on the SPX and all said and done we have satill lot of meat left in the market as corporate earnings bring good news, for me my job here is to stop people from getting in non-sensical trades and get whipsawed, like today I wrote early in the day my supports and my levels the purpose was to avoid the kind of useless noise based trading.
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