Fari Hamzei
Our Market Pulse Indicator is getting in the rebound region. NYSE McClellan Osc closed at -241 and its NAZZ brethren closed at -141. We are deeply oversold here and next week is June Options Expiration Week. The puts bought in the last few days must go worthless by next week. So expect at least a dead cat bounce here.
The caveat is XLF. The Financials are in deep trouble. Best example is LEH (short bias) and SKF (long bias).
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Thursday, June 12, 2008
Sunday, June 8, 2008
Market Commentary sent to Timer Digest on Friday June 6th, 2008
Fari Hamzei
What a day it was........DJIA -394, SPX -43 & NDX -64 !!
As we warned you earlier this week (on Wednesday) to stay nimble as we have a very bumpy road ahead of us. Next week undoubtedly, we shall observe some form of Fed and/or PPT Intervention in our financial markets. But first, we have to go thru Monday and it could be a very tough day.
With Vol Indices at +3 sigma and major equity index averages at -2 sigma, we should be close to a local bottom once NYSE McClellan Oscillator dips below -150. This by no means can be construed as THE bottom for this leg down. We closed today at -110 for this popular indicator.