<OT>Ron, the transcript for the NBR segment with the lady's name & all:
What's Next For Stocks?
SUSIE GHARIB: So, what do the technicians say about what's next for
stocks? Let's check in with Kara
Kavanagh of Bridge Trading. Her charts point to lower levels. So, Kara, it
looks like you're bearish. What are the patterns that you're seeing?
KARA KAVANAGH, TECHNICAL ANALYST, BRIDGE TRADING
COMPANY: Basically what I'm seeing right now is bumping up to
resistance levels in the major indexes, the Dow and the S&P for example.
Bumping up to these upper trading ranges on lackluster volume. And you
really would need the volume to break through to the upside.
GHARIB: Actually, let's go to what your charts are saying, and first take a
look at the Dow. Right now we're around the 8000 level? You're saying
year end 6800. So that stock's going down another 15 percent. Walk us
through this.
KAVANAGH: Sure. It certainly is a possibility. Again, we don't have good
volume on rally days. Also we probably have seen a test of the 74, 7500
level four or five times in the recent past. I think we're going to have to retest
that level again. And I do believe if we break down through that 7400, 68 is
probably the next stopping point on the Dow.
GHARIB: Let's turn and see, we're on the S&P. Your forecast pretty much
the same story where 8875 on the S&P by year end.
GHARIB: That's another 15 percent drop from where we are now. Is this
your worst case scenario?
KAVANAGH: That's my worst case scenario. We did test 923 the other
day so there is some support in the 900 to 923 area. But again, you know,
875, if we do break that 920 area is a possibility.
GHARIB: You know, one of the things that I hear from a lot of the market
strategists who are bearish and see stocks going lower, like yourself, is that
there is not enough capitulation, not fear in the marketplace.
KAVANAGH: Right. I think we're at the ...
GHARIB: It's kind of scary, yes.
KAVANAGH: ... to sum it all up.
GHARIB: But is that your view, as well?
KAVANAGH: I would pretty much have to agree. Again, the volume on the
up- days is a problem. We haven't seen a clean out. We haven't seen a huge
number of stocks on the NYSE making 52-week lows. Not beyond that
1000 level we saw recently. So there are still some factors, clean out factors
let's say, that have not happened yet.
GHARIB: We just have a few seconds left. Real quickly. When stocks do
turn, which stock group will be the leaders this time, do you think?
KAVANAGH: I think we need to focus on the financial stocks. They have
led the market down. Hopefully, they will lead the market back up if we
have a rosy scenario. But definitely take a look at the financial stocks.
GHARIB: The banks and the brokers.
KAVANAGH: Banks and brokers.
GHARIB: Thanks, Kara.
KAVANAGH: Thank you.
GHARIB: And we've been speaking with Kara Kavanagh, technical analyst
with Bridge Trading.
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