Monday, August 15, 2011

What to Buy or Sell This Week?


I don’t have a stock pick this week because I simply don’t see any low-risk high-reward buy-long or sell-short trade setups this week. Short term if the volatility stays high, there’s should be some profitable day trades I imagine. I’m in the bear market camp now for awhile after this technical damaging huge sell-off. It’s not a recession thing. It’s a everyone was one the long side of the stock trade thing, and now I think it will be moving the short side for awhile again in USA and Europe stocks. In summary, I would be looking for a rebound to enter new short positions. Asia on the other hand, I would be looking for buy long opportunities especially in dividend paying China and Hong Kong stocks.

DJIA SP500 Nasdaq Resistance Support Levels

Dow Jones Industrials

Resistance 11692.03 to 12314.91

Support 10122.65 to 10036.39 and 8742.57 to 8656.31

SP500

Resistance 1195.97 to 1252.73

Support 1085.36 to 1077.03

Support 946.39 to 938.05

Nasdaq

Resistance 2534.94 to 2660.70

Support 2153.64 to 2129.81

Support 1780.38 to 1756.55

Any Growth to Be Had Anywhere Around the Globe?

The economic data reports last week where discouraging to say the least, as it was the wildest week in the stock market roller coaster ups and downs of all-time. The crisis continued last week in Europe also with the France GDP, and Eurozone industrial production reports coming in negative and raising the potential of a downgrade of Frances AAA credit rating, and slower growth in the Eurozone. In the USA last week the bad news was the August consumer sentiment economic report coming in at 54.9 which is the lowest since 1980. If the consumer sentiment keeps heading south, this doesn’t look good for USA GDP growth. Bernanke came out last week showing his entire hand saying that he would keep interest rates low until 2013. Either he is lying and he changes his mind later on, or Quantitative Easing III is here no matter what you call it. With all this, the huge sell-off the last two weeks, do you see positive growth to buy long on stocks, or is a double dip recession confirmed? Any which way you slice it, it looks like lower stock prices regardless of what kind of economic data reports or even positive fundamental data there may be in the short term. If there’s any growth to be had anywhere around the world, Asia looks best with dividend paying China and Hong Kong stocks the best bet in my opinion.

This Week’s Important USA Economic Data Reports

Monday: August Empire State Index, August Home Builders

Tuesday: July Single Family Building Permits, July Housing Starts, July Industrial Production

Wednesday: July Producer Price Index, July Consumer Price Index

Thursday: Initial Unemployment Claims, Continuing Claims

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