Schaeffer's Trading Floor Blog

Into the Open

by 5/2/2005 9:07 AM
Stocks quoted in this article:

Shifting from the long-term view in the post below...lets note what the pre-open action looks like...

S&P futures are still holding roughly three points above fair value so it looks like we are set for a positive open. Gold has continued to weaken as it now trades down 2.70. Oil has ticked higher but remains below 50.

A scan of the headlines shows the chatter is already turning to tomorrow's FOMC meeting while oil below 50 is being given credit for this morning's pre-open rally...

<

permanent link
Stocks quoted in this article:

Having read the article in the post below, I now want to turn your attention to the monthly chart of the SPX...


Created with SuperCharts by Omega Research

Here we see the support/resistant zone that we have been discussing for some time. I have also added the 20-month moving average which provides one way to gauge the long-term trend. Friday's close marked the end of April and gave us a monthly close that was mired in that long-term support/resistant zone and perched precariously above the 20-month trendline.

As Bernie noted in his post, the bulls don't see a reason to be concerned while the bears seem on the Street aren't forecasting major declines.

Why is this worth noting? Because the monthly chart above shows we are at a critical juncture. The SPX has not traded below the 20-month average since the bear slide that followed the bubble pop but few seem to be braced for a continuation of the recent downtrend, which sets the stage for negative surprises...

<

permanent link

Must Read

by 5/2/2005 8:38 AM
Stocks quoted in this article:

I have been trying to assimilate all of the comments that I saw and heard over the weekend...But perhaps the best summary can be found in Bernie's most recent commentary - "Déjà vu All Over Again: Happy Bulls, Complacent "Bears"".

If you have not read this piece yet, stop reading this post and click on that link now...Seriously...Go ahead, I'll wait...

<

permanent link

Good Morning

by 5/2/2005 8:00 AM
Stocks quoted in this article:

We follow Friday's bounce with more buying. At least that is what pre-open stock futures show as the S&Ps trade more than three and a half points above fair value. Gold is down 1.50 to 434.60. Oil is down 56 cents to 49.16.

<

permanent link

Final Figures

by 4/29/2005 5:03 PM
Stocks quoted in this article:

As we have already discussed...

Index Index Value Point Change Percent Change
S&P 500 (SPX) 1156.9 13.6 points 1.19 percent
Dow Jones Industrial Average (DJIA) 10192.5 122 points 1.2 percent
Nasdaq Composite (COMP) 1921.7 17.5 points 0.92 percent
Russell 2000 (RUT) 579.4 4.4 points 0.76 percent
CBOE Market Volatility Index (VXO) 15.18 -1.38 points -8.3 percent

...the bulls made a push today to keep the week from being a complete disaster. The RUT and COMP lagged the action but did make up some ground into the close...

Overall, we see a big drop in oil as most indices trade higher. Housing stocks were the largest gainer as the group recouped some of yesterday's large drop. It is somewhat interesting to note that even with all of the buying the seemed to go on today, semis and internets couldn't gain traction.

And while the major indices ended the week on an up note, the tune is still somewhat downbeat as the major indices are still locked in short-term downtrends and remain near the lows for the year. And that is where I will pick up on Monday...

<

permanent link
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT

Partner Center

© 2014 Schaeffer's Investment Research, Inc. 5151 Pfeiffer Road, Suite 250, Cincinnati, Ohio 45242 Phone: (800) 448-2080 FAX: (513) 589-3810 Int'l Callers: (513) 589-3800 Email: service@sir-inc.com

All Rights Reserved. Unauthorized reproduction of any SIR publication is strictly prohibited.

Market Data provided by QuoteMedia.com | Data delayed 15-20 minutes unless otherwise indicated.