NQ (NDX future) closed inside the morning's gap, unlike ES and YM. That lag was also present in the cash NDX doji close. My guess it is tied to some perceived Yen strength. Whenever you see a high beta sector slightly under performing, look at at the carry trade. JPY June long could be a play. The Yen is undervalued and I don't think Wednesday's overnight jump was an isolated incident. Worst case scenario, it is a very good hedge. I like techs and I think COMP 2600+ is in the wings, but there are always bumps on the road.
This entry was posted
on Saturday, April 21, 2007 at 4/21/2007 01:47:00 PM.
You can skip to the end and leave a response.
4/21/07 4:10 PMThanks so much for the posts..I read them everyday (multiple times in a day) and they are always concise and very data-centric and informative.
I would like to know your opinion of things to come though - you expect 2640 on the nasdaq but do you view that as a top or an indicator of something bigger?
4/21/07 10:49 PM
Thanks for the kind words.
As you know, 2645 is 38.2% 2000/2002, a number many chartists have been eying since the 2003 bull started. I have no idea what will happen if and when we hit that mark, although I suspect the markets will pause. We will follow the money at that point, just like what happened with another key index, OEX and the 670 mark in February (failure and sell-off)and last week (breakout).
The COMP is where millions of over-zealous investors lost their shirts and as such it will be the most important technical event since 2002.
» Post a Comment