--Financial Tools ---Futures Market---ADD HERE LINK-- OPTION ALERTS --BENZINGA--

« Home | There will be tough economic times ahead » | Trade Idea for today - Cisco Systems » | Don't Panic! It's Time to Celebrate » | More Bad news coming from Europe!!! » | Stock Picks and Trade Ideas for Tuesday - EBAY, GO... » | France In Recession & some trade Ideas for the wee... » | AC Investor Blog - This week's visits and Page Vie... » | Stock Picks and Trade Ideas for Friday - TRN, YHOO... » | Which bank in Europe or Asia will be the next to g... » | Surf anonymously with OperaTor » 

Saturday, October 11, 2008 

The week of the big falls

The major stock exchanges have lived another week of widespread panic, with United States and Japan leading the falls. The Dow Jones Industrial Average fell below 8,000 for the first time since 2003 over this week as higher borrowing costs and slower consumer spending spurred concern carmakers, insurers and energy companies will be the next victims of the credit crisis. The fear that the credit crisis will worse and the economy will go into a deep recession is weighing extremely in the investor sentiment. The market continues to show sceptical that the intervention of European governments and the recent cut across the reference rate of interest of major monetary authorities will be not enough to prevent the financial crisis affecting the world economy and avoid the recession. The most affected sectors by this crisis are definitively the financial and the tech. No one wants to take positions in sectors vulnerable to the economical fluctuations, mainly when the credit crisis is worsening. Also, the continuing fall in oil prices, which is the lowest in a year, and other raw materials penalizes the negotiation of the producers of "commodities". What markets are telling us is that it doesn't matter what central banks and governments are doing, nothing seems to be working. I have never seen anything like this before. Is this the begin of a new era in stock market ? Let me know your opinions.

Chart courtesy of stockcharts ( click to enlarge )

GS - It is likely that next Monday will be very indicative of what to expect from the stock for the week. A break below $85.88 intra-day could generate aggressive selling. If the stock opens higher on Monday, rallies up to the 100 level are likely. Nonetheless, such a rally would not necessarily get rid of the bearishness of the break on Friday. Technicaly, the chart shows this is still a weak stock as 50 day moving average is still below 200 day moving average. MACD which just dropped below 0 again recently indicating a bear signal as well.

Chart courtesy of stockcharts ( click to enlarge )

AAPL - On a daily closing basis, there is decent support between $85 and $87.5. Resistance, on a daily closing basis, will now be decent at 101.50. Any close above this level will be considered short-term positive, as there is no resistance above $101.5 until $115.88 is seen. If the near-by support at $91.26 holds up on Monday, a rally up to the $101.5 level is probable.

Disclaimer : Trading stocks involves risk, this information should not be viewed as trading recommendations.The charts provided here are not meant for investment purposes and only serve as technical examples.

That's All. Enjoy your weekend !!!

AC

Labels: , ,

Bookmark and Share

It couldn't have gone up forever. The market is a zero sum game its going to go back up sooner or later.

Post a Comment
Contact

About Me

    Photobucket
  • I'm a 43 year old Independent Trader using proprietary technical analysis with more than 18 years experience of investing in the US stock markets. I started this blog in 2006 simply as a way to share my thoughts about capital, risk management, and trading. My blog contains only my personal opinion and is provided for informational purposes only.

  • Benzinga.com supporter

    Iceman Trading Academy Moderator

    Benzinga.com supporter



    FREE NEWSLETTER

      Enter your email address:

      Delivered by FeedBurner

      Subscribe my feed :

    Support AC

    • Support AC Investor Blog, Donate with PayPal

    Advertising

      Interested in advertising on AC Investor Blog ? Click Here

    RECOMMENDED



    TRANSLATOR

    Site Information

    Stock Market Blogroll

    Friends BLOGROLL

    ARCHIVES

Powered by Blogger
and Blogger Templates


Add to Google