A blah day
Dow Jones up 50 @ 7,939 (need to reclaim the 8,000 level and soon)
CRB Index down 2.14 @ 216.11
Oil down 1.5 @ 36.04 (a break of the support line at $38)
Gold up 25.6 @ 939.8 ($1,000 here we come)
Copper down 1.5 @ $156.1
THE HINDSIGHT
It was finally passed and the market hardly blinked at the $789 bln stimulus package, the market is more concerned with company reports than a much hyped plan which still might not even work. Indeed, the chief stratergist at Bank of America, a Richard Bernstein said yesterdays bank bail out won’t work and advisers clients to flee the banking stocks(does this guy want his job?). Also added that “large” banks should be “shut” and others should merge…er, so we get even more job losses, Dickie?
China reported its biggest fall in exports at down 17.5% which is the biggest drop in 13 years;things just seem to be going from bad to worse over there.
CBA provided a positive reporting a 1st half profit of $2.57 bln but more importantly they maintained the dividend although they did say that might not be maintained in the future.I still like this stock and am long from $29.80 targeting $34.00.
THE FORESIGHT
I’m concerned that the Dow Jones continues to trade under the 8,000 level and is showing no signs of reclaiming it, the longer this continues then we are facing a few more major leg downs possibly to the 7,400 level.
I am short BHP at $33.80 targeting the $29.70 area. Stop loss at $34.20 as any break over the triple top level of $34 and expect a move towards $40.00
I expect a quiet day today on our market after yesterdays very impressive resilience.
Have a great day
Regards,
Lou Muddaris