Breakfast with Brodsky
So what is my point? Why am I outlining these levels and this time frame? We can't trade in this range forever. I am simply pointing out the levels where we are trading and stating that I believe when we break, it will be up and we will continue to trade along with the primary trend of the overall marketplace (please note this is not intended as advice).
We are beginning to see more and more consolidation with the Juniper (JNPR: NASD)/Netscreen (NSCN: NSAD) deal yesterday and we see NT Assembly (STTS: NASD) buying Chipaac (CHPC: NASD) today. I believe that these deals are healthy, not only because consolidation is always good, but it also shows that in light of everyone saying "the market is overvalued" deals are getting done.
After Friday's big move up, we saw a little pullback across the board. The S&P closed just shy of 1140 after topping out at 1145. Look for 1135 to provide some short-term support and 1145 to act as short-term resistance. Look for the Dow to run into supply at 10,620 and demand to enter the marketplace at 10,525.
The NDX couldn't break and close above 1500 yesterday. It was able to trade above it for a bit before reversing and closing at 1490. Look for resistance at 1500 and then at 1507 while support will enter at 1470. A strong close above 1507 could push this index right back on its way to its highs of 1560.
With Greenspan speaking tomorrow and everyone on edge about any hint that he may give about when rates might be hiked, we may see little action ahead of that report. I will be paying attention to the levels of the major indices to guide me through the next few days where we could see increased volatility. Good Luck.
The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.
Copyright 2011 Minyanville Media, Inc. All Rights Reserved.
Daily Recap Newsletter