Two Ways To Play: How Low Will S&P Go?-Minyanville

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Two Ways To Play: How Low Will S&P Go?

Terry Woo Nov 18, 2008 11:10 am


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S&P 500 Likely to Make New Lows

According to Bloomberg, the nation’s top-ranked market technicians are calling for new lows in the S&P 500.

Last week’s 11% rally from a 5-year low lasted just 1 day - and the index has slipped 6.6% during the last 2 sessions. Jeff de Graaf of ISI Group, the highest-rated technical analyst by a Institutional Investor magazine survey, said, “Historically, you would’ve had a better charge from the bulls at this point.” And John Roque of Natixis Bleichroeder thinks the index will likely fall to 680 by the end of the year.

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For a fundamental view of the markets, see Professor Bennet Sedacca’s Why Debt is Now Best.

From the Bull Pen: Consider deep-discount retailer 99 Cents Only Stores (NDN). See the stock pulling back to its 20 DMA (11.15). A sell stop can be set near 10.60.

From the Bear Cave: Those bearish can consider pressing the downside in Deere (DE) on the belief it will make new 52-week lows. One option is to set an initial position here with a buy stop above $35.

Quick Check Around the World

Asian trading closed with the Hang Seng -4.54%, Nikkei -2.28%, Sensex -3.81%, Taiwan -3.03% and Shanghai -6.31%.

Glancing towards Europe, we see the CAC -1.48%, DAX -1.43%, FTSE -1.46%

As of 8:15 a.m. EST, S&P Futures are trading -8 to 842, and Nasdaq futures are -9 to 1150.
A Look At Commodities

Crude oil is trading -0.47 to 54.45. Gold is -9.00 to 733.00. Silver is -0.030 to 9.300 and copper is -5.200 to 164.95.

The dollar index is +0.150 to 86.966.

On the Radar

Economics

08:30 Producer Price Index
08:30 PPI ex Food and Energy
09:00 Total Net Tic Flows
09:00 Net long-term Tic flows

Click here for the full trading radar.

Good luck today!


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11-18-2008, 9:19 am
But are these so called top rankers taking into account the Fed and what they have done and what they can do to the charts? Read More


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