|
James, Nikkei down to 13,230 area and dragging China along down to 1,100 and retest of August lows. Both markets bounced off intraday lows nicely. A double close below 13,000 and asian flu goes from Japan to China 2X close below 1,100 and eventually to U.S. market shores. This retest of these lows may hold for now, but keep an early watch if further developments materialize. Also, NAPM #'s can hardly be satisfying at best and ORE only hopes the bottom has been scalped without market damage for 7 down months in a row. 45.1% is a sick # to be sure. 45 must hold, as anything below this # reported next month or thereafter indicates economy crawling at snail-like speed and no fundamental analysis will justify orbital stock valuations. Further, no rate cut is going to help markets to rescue like Oct 8. Techs continue to lead rally, but with reporting season to commence in short week, they may buy rumor of good earnings whispers and sell day or two before report and into the news. In short, this may already be discounted into markets. I am still holding out for DOW 9770, SPX 1290 SOX 375 by end of Jan. IKe's BKX keeps moving intraday above 815 only to close below. Bond yields backing up as Japan and others convert to Euro of choice over $ and this will also act as drag. If today's trading is a microcosm of 99', buckle up for some major rollarcoaster rides. JT |
