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Strategies & Market Trends : John Pitera's Market Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: Stoctrash who wrote (12027)	2/26/2009 8:18:54 PM
From: John Pitera	Read Replies (1) \| Respond to of 33421

WOW, that is low and slow..... I don't recall seeing a number that low. It looks like SLAB and TSM are continuing to do some business. thanks for the heads up on that stat. John

To: Stoctrash who wrote (12027)	2/26/2009 8:40:55 PM
From: John Pitera	Read Replies (1) \| Respond to of 33421

I'm thinking that the SPX and $COMPQ are going to hold their November lows and that we have a short covering rally to unfold. That's what the Wave structure and very pervasive bearishness is indicating to me. The very strong performance of the USD/JPY the past couple of weeks and the EUR/JPY strengthening is also leading me to this same conclusion. It seems very hard to believe on the surface. For this rally to unfold it would most likely take the SPX back to the SPX 943 area, and as we discussed on the phone the 200 dma is way at 1083 and change currently. The 200 DMA is going to be declining every day so it might even be possible to get a move all the way back to it at say 1030ish or so. the LIBOR OIS is still up near 1.00% and it needs to drop to .25% or so but some measures of liquidity have improved. The Government has gotten very agressive in changing the $7500 first time home buyer tax credit, which amounted to an interest free loan to be paid back over several years to an even more aggressive $8000 tax credit that never has to be paid back. very interesting. Not sure how to reconcil this analysis with the dangerous situation with GM and Crysler, but we shall see. John