Downside Target For The Dow Jones Industrials
The stock market got hit again today with the dow jones industrials falling 220 points. My first downside target was almost reached this afternoon as can be seen in the above chart. If the dow can sell off just a little bit more, I will exit two thirds of my short position.
I still have some Q's long and my protective stop is below last week's low. The NASDAQ in my opinion is still holding up much better than the rest of the market. If stocks can bounce just a little, I think the NASDAQ will take off.
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2 comments:
read somewhere that the reason for the NAZ holding up better than the SPX or INDU is the NAZ's lack of financial 'services' companies. (boy, what service.) so, yes, the NAZ is relatively stronger during this decline, but i expect it'll still decline--it just won't decline as much as the other indices.
I think if Google closes below 540 the naz is toast.
Would not be surprised if PPT starts to prop up RKH and XLF, although Paulson said nobody's to big to fail. Fed now has themselves between rock and a hard place. Not many bullets left. Lower rates dollar falls, raise rates, more forclosures and home equity defaults
If energy tanks it might buy some time but I expect S&P to be much lower by mid October. Just look where financials were in 2002-03 and I think banks are way worse off than then. Sold half of position in SKF Friday in case of PPT takes action.
Thanks for your work.
Jim
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