Sunday, October 24, 2010

Itz Weekend Market Review

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With about a third of earnings reported, the markets are about a week away from the mid-term elections & the FOMC meeting. This week end the G20 finance ministers met in South Korea. G20 inks pact to avert trade war LINK Geithner, in an interview with Bloomberg Television after Group of 20 finance leader meetings concluded here on Saturday, said China views a higher yuan rate versus the dollar as in Beijing's interest because it does not want the U.S. Federal Reserve to control its monetary policy. LINK
Next week's economic calendar is active with multiple housing reports, Fed surveys and the GDP on Friday. The GDP will be the most important report for the week and our first look at Q3. Estimates have risen slightly over the last month but the whisper numbers are still in the 1.6% range.
Looking at the major indexes, the Dow Jones recently had a Golden Cross and tested its April highs...the other major indices look likely to follow. Itz has held to the 1225 level as a target, we could see a double top? After all this rally has most likely factored in a 'large QE2' & a Republican sweep in November...what if it doesn't occur? Most investors are looking at taking profits in '10 & not '11 as well. Bottom line expect 1225/1250 to be resistance, the S&P500 chart looks like a possible Cup & Handle may set up into the New Year. Yes, I know don't fight the Fed, but will the Fed let investors down?

~~*Note Proshares Ultra Short Crude Oil (SCO) 1/2 position stopped out Friday @ $13.00 on enttry of $13.00 thus remain 1/2 position cost basis is $12.50 set stop @ $12, Itz may resuggest adding to SCO in coming days.

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