Oh, I'm not saying we're going lower over the coming months, just for the next couple of days.... I'm just believe that this week's action took us into an overbought condition on the DOW that needs to be backed and filled, and then possibly a run to 9,500-10,000 sometime this month. But I still potential downside to 7,000 by the end of the year (and a nifty January effect, I hope).
bigcharts.marketwatch.com
The Nasdaq, on the other hand, looks more solid with regard to support levels. However, I see MAJOR resistance at 2,500, and I'm not sure we'll even make it past 2,200:
bigcharts.marketwatch.com
Btw, I would prefer your scenario over mine... :0)
But that's why I'm sticking with selected shorts and longs.. Making a little money shorting BBI this week (after all, how many videos can a family watch??), and playing a BB stock I've recently added to, MUCP, and making some money on that...
But I'm being pretty careful right now... Too much nasty stuff can still go on with regard to "war on terrorism"..
Watch Saudi Arabia particularly closely... The fact that the Saudis are getting "hinky" about supporting us in this "affair", suggests that the Wahhabi clerics might be trying to pressure the royal family (the clerics were big supporters of the Taleban). Undermining the Taleban's government stands to undercut the Wahhabi's power in SA (they are quite similiar in their extreme fundamentalist views and culture)...
And that combined with Israel threatening to "stir the pot" (rightfully, imo) against Palestinian terrorism, threatens to send this "war" spinning out of control.
So that's why I'm still a bit hinky... If we get an oil shock due to this war getting out of hand, it will only add additional pressure on the global economy.
Hawk |
