Mondays trading session answered the burning question after a fantastic 3 weeks of buying stimulated by the fed and other blatant jawboning efforts.
We had a mild sell-off and took a breather…is it enough?
Hardly and earnings season promises to be more bleak than the current market would indicate upon first glance…however remember this key point: The market is a discounting mechanism. The markets you see today are technically based on the assessment of 6 months or more in some cases from today.
Is it a safe bet that the financial situation in the global economy is improved 6 months from now?
I wouldn’t bet on it however I am seeing light at the end of the tunnel.
The immediate issue at hand…today the DOW broke to the daily 50 Day Moving Average and travelled down 254 points. Hitting the Stockshakers target for the day at 7437 and remember this number for Tuesday’s stock market trading session. If we test the hourly 50 day simple moving average in Tuesdays trading session and fail the support we will see today’s lows at 7437 as the next support level and there is a high likelihood that we retest that level. If we take out the 7437 level we will then see Tuesdays target at the 7200 range.
Oil is paying great on our put positions.
As the fed buys the treasuries to lower the mortgage rates to stimulate the housing markets the commodities will rise including gold and oil. The U.S. Dollar is a key factor here.
The U.S.A. presidents automaker bailout plays a role in this as well.
Wall Street’s March rally is on hold after the White House rejected turnaround plans from General Motors Corp. and Chrysler and gave investors an economic reality check.
Right now as in all bear markets news (Good and Bad) is amplified…This is another key factor when planning the move back into the long term market positions. Many have jumped back in as of March 10th and have found the move to be very rewarding however are you still long here? Monday may have started a reversal. Technical indicators are pointing to a continuation to the upside however Stockshakers sees the potential for a continuation to the down side from here.
We are currently short Oil, Short the DOW buy options on the DIA, DDM, or DXD if you want leverage.
Shorting (Buying Puts) on TUP here.
We are short RIMM.
Gold may retest $880 here.
ISYS long
ou are going to read and hear more and more now about buying the market before it pops because the financial crisis has passed. Be careful.
Stockshakers is only cautiously venturing into near term positions. There are some obvious long term options for different tollerence levels. There could be darker days ahead still.
The unemployement levels are not being corrected yet. The housing market is not out of the woods.
Hold off on getting too far ahead of ourselves here.
| Futures | Last | Change | Change % |  |
| Crude Oil | 49.19 | +0.78 | +1.61% | |
| Natural Gas | 3.8 | +0.06 | +1.60% | |
| Gold | 919.8 | +2.1 | +0.23% | |
| Dow | 7539 | +59 | +0.79% | |
| S&P 500 | 791 | +6.7 | +0.85% | |
| Nasdaq 100 | 1234 | +11.25 | +0.92% |
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