Bank of England cut their rates by 1% to the 2% level. The ECB cut their rates by .75%. The Fed is expected to cut the rate to .5%. Sweden cut their rate by 1.75%. Hedge funds continue to have problems, with GS’s Liquidating Partners down 55% so far this year. Citadel Funds lost 11% in March and is now down 47% for the year. Oil was down to $46.66 with Exon down on Merrill’s forecast of $25 a barrel for oil. With Merrill’s call to $25, are we near a bottom in oil? Goldmans call for oil hitting 200 was the top in oil!The number of those collecting US jobless benefits rose to over 4 million, the highest level since 1982. Tomorrow the markets wait for the new claims number.
As the saying goes it’s not the news but the reaction to the news. All the news continues to be negative and more negative reports came out today about employment, etc.On Friday a chart was shown to watch support between 810 – 840. THis support has held and now has regained the 870 levels. Today had good upside and strong upside volume. These supports will need to hold and follow thru is key.
I think the link is fixed on the blog for the Spike Research videos. Please try the link again and let me know if there are any issues.I will try and post some new videos soon.Kerry
The market tried to recover the 850 support levels as the Bears could not follow thru with yesterday’s selling. NH_NL remains flat and NL did not expand in this latest selling. This indicates the selling pressure may be nearing exhaustion. The bulls will need regain this support level and close strong on solid internals. This would then be considered a test of the recent spring action we saw on 11/21.
Most of the major indices gave back over half of their five day gains in a single day. The Russell 2000 fell almost 12% for the day. The SP-500 fell 8.9%. The DJIA fell 7.7%. The Nasdaq fell almost 9%. The Philly Oil Service group was down almost 16%. All the major indices fell and fell hard.
As co-managers of SpikeTrade.com, Alex and I like to select our favorite picks from among those submitted by Spikers and trade them in the week that follows. Please keep in mind that we may trade this pick in a different way from the Spiker who recommended it. Please remember that we, along with Spikers and Spectators who post their picks, are not running an advisory service – we share with you our thinking processes. You are responsible for your own picks, and you must always use good money management.In addition to a Spike pick, we may use this email to share our research into the markets with you and include additional charts in our comments.Kerry
Hello Spike Members,I hope everyone had a wonderful weekend and those that celebrated the Thanksgiving Holidays in the US had a pleasant and safe holiday!The SpikeTrade site continues to improve and new features added each and every week. Some features you may notice and others are backroom features that is not as noticeable but keeps the engine room running smoothly.One feature I want to mention is part of the Guest access. It is our SpikeTrade blog. You can read this blog by simply clicking on the blog link on the members home page.
The group ended a shortened week nearly flat as many of the picks did not hit their entry points. 2 Spikers had positive gains as Dave F wins Gold and Jeff win Silver. They both will split the Bronze points.Spike Members, Helena, Rodyrk, Mike, and Dennis all win $20 dollar credits for outperforming the Bronze medalist.Congrats to this week’s winners!
The markets added another up day making it 4 in a row as we head in the long weekend as the Thanksgiving Holidays begin. We have to go back several months to find 4 up days in this Bear Market.Volume was light as expected before we go into a holiday weekend. Up volume was again 90% so breadth was strong. The news is still grim and likely will be for some time. It always is as market tries to go thru a bottoming process. By the time the news becomes positive the markets will be in an early stage of a bull market. We still have a lot of issues to work thru and this remains only a bear market rally for the moment. Until we can test supports and they hold for more than a day we will not know if we have a chance for a bottoming process to take hold.I hope those of that will be celebrating the US Thanksgiving Holiday will stay safe and Happy Holidays. The Markets are closed tomorrow and will be open only half day on Friday.
Fed announced two new programs that will provide another $800 billion to "unfreeze" credit for homebuyers, consumers and small businesses. $600 billion of debt will be purchased by the Fed of direct debt of Fannie Mae, Freddie Mac and the Federal Home Loan Banks, as well as mortgage backed securities of Freddie, Fannie and Ginnie Mae.