Wednesday, August 22, 2007

Pre Market Commentary

The Asian and European markets are very bullish and sign point to a higher open here on Wall Street.

Talks of a merger between ETrade and Ameritrade are having a bullish effect on the broker stocks and the overall markets in general.4 trading days ago, ETFC was as low as $9.92. Today it is over $16. Thats a better than 60% gain in 4 days. Simply amazing.

Are money market accounts safe ? Its appears a whole lot of money market accounts have subprime exposure which means serious problems could still lie ahead especially for investors who though money market accounts were risk free.

The global commodity boom continues as BHP Billiton reports strong profit growth and expects solid growth in the future as international demand soars.I would take this opportunity to add to basic material stocks - steel, aluminum , copper and so on. TIE RS AA FCX RIO all look very attractive here.

From a technical standpoint, I would be looking at S&P 1455 as resistance though I would look to add SSO if we decisively break this level and SDS if we fail. In the case of the Dow, it appears resistance is around 13200-13250 with support at the 200 day at 12851. The Nasdaq has support at the 200 day 2502 level while 2530 appears to be resistance. I will be watching these levels closely today.

1 comment:

TheCapitalGame said...

I wonder if we get a sell off into the close.
Silver has broken down technically.