Tuesday, January 29, 2008

Market Top = SRS at 96 --- It's possible

Here's another stock hit by retail--
If retailers large and unknown are having slower sales--
they cut down on inventory and then slash advertising--
This is what Yhoo complained about and down 19% they went-
GOOG is in the same boat---
an 11% correction ($55) puts GOOG
right at the perfect buy price --$490 or so
that equals the 400 day and the FIB 61.8%


The semi-conductor business is tied massively to the retail sector—
If they aren’t buying it then semi’s stop making it ---
Amazon collapsed in AH---
And if you were long AMZN going into earnings call,
then I don’t know where you were at Xmas
when all the Retailers took hits at Xmas—
Then retail stock price on some stocks took 40% hits---
Now you know why semi’s took 40% hits---
Semi’s = retail


How high can the market go with all these new power relief
FED Congress one two puuch?
INTC at the 200 day---= 19% higher from where it is today-
The whole story is in the Gap tests----
see for yourself---

With most of the main indexes supported at the BB13 middle band—
I’m expecting the market to melt down or grind upwards to the upper band ---
The XHB is remaining very strong
which is very bullish for the rest of the market
and with the 0.50 rate cut almost a given –I expect the major indexes to test the upper band before testing the lower band
so I’m keeping my on SRS = ultra short real estate.
When i see that at 96 , that will be my signal to GO SHORT the market---
or at least XHB--
FEB 1 isn’t looking like the greatest time for economic reports,
so A continuation of the major indexes
to the upper band BB13 will have to come from earnings reports

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