|MV Weather Report: Low Pressure System Hits S&P|
By Matt Theal SEP 11, 2009 4:35 PM
Rain or shine, we reivew the day's biggest stock stories.
It was a sleepy Friday on Wall Street as stock prices waxed and waned before closing the day lower by -0.14% to 1042. The S&P 500 snapped a five day winning streak but stocks still had a strong week for stocks as the index made a new 11-month high at 1048.
Today on the Buzz and Banter, Professor Smita Sadana gave her thoughts on the action in the S&P 500.
"However, today is the first day when there could be valid expectation of mild downside action. Let’s go the charts for more.
"SP-500's 55 point rise since that note has taken it up to the top of the trendline. The last time it occurred, a mild decline ensued.
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"Dow Transports have enjoyed a spirited move to the 3rd SD of Bollinger Bands (a sign of overall strength and confirmation, but in the very short term could signal the need for rest).
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"But it is imperative to remember:
"1. That the support levels have also risen with the market.
"2.The very fact that the market bounced even before it hit important support levels, signals that there could be significant buying interest waiting for every market dip.
"3.And markets rarely break down viciously from new highs UNLESS ‘injured’."
While many are looking for the S&P to turndown, others are looking for Gold to rally. Gold made a very quiet move over 1000 today closing at 1007 up 1.09%. Gold stock were strong: Agnico Eagle Mines (AEM), Royal Gold (RGLD) and Goldcorp (GG) to name a few.
Today on the Buzz and Banter Professor Lance Lewis gave his thoughts on the move in gold.
"With gold well above both the $1000 mark and its February peak and now closing in on its all-time high of $1030 spot even as the dollar index is only off a third of a percent or so, the market is once again shouting rather loudly to those that are listening.
"To repeat: The dollar could be about to have an accident.
"And based on the stronger economic data out of China overnight, China might even be the potential catalyst for that accident. For those holding dollars, risk is VERY HIGH."