17th Oct 2010 – My Analysis

BULL or BEAR ??

 

Short term (1 week)	Long term (6 months)
Reason: VXX still continuously pushing for new low Short term wise, more stimulus will boom the market DJIA penetrated 200MA line NASDAQ up > 1% even though DJIA is in red	Reason: Unemployment is still too high Debt in Europe, Japan and US will not go away easily Currency war is going on Gold & commodity are all time high More stimulus ahead and drop of USD

 

Next Week Economic Data:

 

 

VXX chart:

 

 

 

Input:

1. VXX keep going lower. Now it is even beneath the downtrend line some more. Could this be the second wave down?

 

SPY chart:

 

 

Input:

1. The short term Up Trend line is still intact.
2. Approaching the 200MA line. This is going to be very intersting.
3. Long term MACD still bullish.

 

NASDAQ chart:

 

 

Input:

1. Even DJIA is in red, NASDAQ is very bullish driven by GOOG financial report.
2. Entire technology sector is very Bullish, including AMZN, AAPL, YHOO

 

DJIA chart:

 

 

Input:

1. Penetrated 200MA line
2. 11K point is now a strong support line

 

Sector Analysis:

 

 

Input:

1. Only financial sector XLF is showing a slow down, resting on its 50MA line.
2. XLB, XLI, XLU and XLP are all reaching the trend line resistance.