To Thread,
Most investors mainly look at the individual stock, and only gives minimal attention to the overall market/sector. Since I mainly only trade INDEX OPTIONS, I would like to technically address a major question: WILL THE MARKET CONTINUE UP AND BY HOW MUCH????
Besides checking nearly 20 INDEXES daily, I also check the TYX(30 year treasury notes) and the CRB(commodities). Normally, as the interest rates and the CRB declines, such environmment is good for the market. Well, not only are they declining, but both have actually just made a technical breakout to the downside. Hard to believe that they can go lower; however, technically, once they are beyond the technicals the possibilty of further lows are quite good.
TYX - closed at .6615, next support lines on the interest rates are:
****** .654 - STRONG
****** .648 - WEAK
****** .635 - STRONGEST (52WEEK LOW)
The interest rates are actually quite predictable, technically. For those not familar with trading treasury notes - If one had purchased 25 year STRIPS(ZERO COUPON BONDS) in the the .71 range (in APRIL), their gain now would be about 30% now.
CRB - is now setting new 52 week lows. The Bottom is anyones guess - this is a true technical breakout(downside).
Once the interest rates gets to the .645-.65 range, technically the environment for stocks to peak/start dropping would be prime, since the interest rates will start moving up soon thereafter.
A technical view. Keep your eyes on the interest rates and the CRB.
Seeya |
