Two Ways To Play: How Low Will S&P Go?
Strengthen your portfolio in good times and bad.
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.
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
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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