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The Economy, stupid


NorthSideSox72

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QUOTE (NorthSideSox72 @ Nov 19, 2008 -> 02:49 PM)
Markets tanking again, down around 5% on the big boards.

 

Seems like the DOW keepings flirting with 8000 but not getting below (at least not at close). The chart looks to me like its got a ground floor around that mark, unless some other major new lurking monster appears. With the news as bad as it is already, it would have to be a pretty huge monster.

 

I'm going to have to say to CKnolls, I don't think we're going to the 6's on the Dow. I just don't see it, unless something on the scale of a new swaps crisis or a thorough collapse of the auto industry occurs (more than just GM declaring bankruptcy - I mean someone ceasing major parts of their operations immediately).

 

Just call it a hunch, but I think the Dow will bottom out about 7200.

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QUOTE (NorthSideSox72 @ Nov 19, 2008 -> 02:49 PM)
Markets tanking again, down around 5% on the big boards.

 

Seems like the DOW keepings flirting with 8000 but not getting below (at least not at close). The chart looks to me like its got a ground floor around that mark, unless some other major new lurking monster appears. With the news as bad as it is already, it would have to be a pretty huge monster.

 

I'm going to have to say to CKnolls, I don't think we're going to the 6's on the Dow. I just don't see it, unless something on the scale of a new swaps crisis or a thorough collapse of the auto industry occurs (more than just GM declaring bankruptcy - I mean someone ceasing major parts of their operations immediately).

 

 

How about no earnings for any company?

 

 

 

Hey Ken Lewis, you still going to pay $28 for MER? MER trading 9.64. LMAO!!!!!

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QUOTE (NorthSideSox72 @ Nov 19, 2008 -> 03:06 PM)
So, predict for us good sir... bounce tomorrow, or a big drop to a new resistance level?

 

We have kept hitting into the 7900's in the futures, (3 times IIRC) if we breach it, I could totally see the big sell of that Knolls has been talking about.

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QUOTE (Cknolls @ Nov 19, 2008 -> 03:13 PM)
Right, there is no such thing as a quadruple bottom.

So you see through and through, not bounce away?

 

I can see us dropping big into the 7000's, but I don't see going much below 7250 or so.

 

Me personally, I'd go long once its below 7500 or so, again barring a major shift in the landscape.

 

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QUOTE (NorthSideSox72 @ Nov 19, 2008 -> 03:06 PM)
So, predict for us good sir... bounce tomorrow, or a big drop to a new resistance level?

 

 

I think we have to test the 2003 and 2002 lows. 788.90(2003) and 768.95(2002). Then see how they act from there.

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QUOTE (Cknolls @ Nov 19, 2008 -> 03:16 PM)
I will tell you this, i am thinking about starting a short position in the U.S. dollar via the UDN(short dollar etf). If/When stocks decide to rally it will put pressure on the dollar. Also when the Fed re-inflates that too will pressure the greenback.

 

Crude Oil calls would give you a lot more upside. Crude and its by products are incredibly oversold right now.

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QUOTE (NorthSideSox72 @ Nov 19, 2008 -> 01:06 PM)
So, predict for us good sir... bounce tomorrow, or a big drop to a new resistance level?

I'm going to take the "Bounce" on this one. It won't be permanent, but that's my guess. And just FYI, I have no financial interest either wya.

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