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Watch for support at 9750 on the dow



June 07, 2010 – Comments (20) | RELATED TICKERS: DIA

   If the DOW can hold above the 9750 level on the CLOSE throughout the week,we may get a substantial snap back rally....    Any CLOSE below this level and the next stop Is 9200 before you would probably see substantial support...    The news cycle will play an Important role In the coming weeks...     TS      Late slide: Stocks fall in last hour, Dow down 115

By TIM PARADIS (AP) – 3 hours ago

NEW YORK — Traders gave in to another case of last-hour anxiety Monday and drove stocks to their lowest level in seven months.

The Dow Jones industrial average, down just 42 points at 3:15 p.m., was down 115, or 1.2 percent, by the close 45 minutes later. That extended the Dow's sharp drop from Friday, when it lost 323 in response to a disappointing May jobs report. Broader indexes had steeper percentage drops than the Dow on Monday. The technology-focused Nasdaq composite index fell 2 percent. Treasury prices rose as investors again went in search of safe investments.

There was no obvious catalyst for Monday's late slide, although traders were again preoccupied with Europe's economic problems. Traders know that Europe's business day begins before trading opens in the U.S., and they'd rather sell then wake up to an unpleasant surprise. The last-hour selling, which followed a similar move Friday, also recalled the 2008 financial crisis, when traders decided the best strategy was to dump stocks just before the close. 

20 Comments – Post Your Own

#1) On June 07, 2010 at 11:11 PM, topsecret09 (83.94) wrote:

Stocks test price floors amid wave of selling     USA TODAY NEW YORK — One by one, the planks that serve as a floor-like support for stock prices are giving way amid ongoing selling pressure on Wall Street.

Investors know all about the economic and geopolitical headwinds hurting stocks. Debt problems in Greece spreading to other European countries. Crude oil gushing into the Gulf of Mexico. Korean saber-rattling.

The latest blow came Friday: a fragile U.S. economy unable to create enough private-sector jobs to quell fears of an economic relapse.    The newest obstacle? The negative price action of stocks themselves. The Dow Jones industrials fell 115.48 points Monday, capping a two-session drop of 439 points and closing at 9816.49, a fresh 2010 low. Analysts who measure the market's health by studying the price charts of major stock indexes are starting to warn of serious deterioration. They say if the downdraft is not halted soon, it could lead to a second leg down and an official bear market, or 20%-plus drop.

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#2) On June 07, 2010 at 11:16 PM, topsecret09 (83.94) wrote:

DJIA Slides Under 'Flash Crash' Low Blue Chips Fall 115.48 Points to 7-Month Low as Buyers Stay Away; a Sudden Pulse Pushes Up Gold     

Stocks fell on Monday in a late-day selloff that took the Dow Jones Industrial Average below its lows of the May 6 "flash crash."

The Dow ended down 115.48 points, or 1.2%, at a seven-month low of 9816.49 and below 9869.62, its low-point of the May 6 slide. That day, buyers rushed into the market at that level, helping pare a 1,000-point drop to a decline of 347.80 points.

But on Monday, no such buying appeared. The Nasdaq Composite fell 2%. The Standard & Poor's 500-stock index slid 1.4%.

"Global tensions are at a pinnacle," said Mike Daly, gold specialist at PFGBest in Chicago. That has prompted investors to move money into "tangible, safer assets."'

As part of that move, gold soared, ending with its biggest one-day gain in almost four months. Gold also began the day quietly. But at around 10 a.m., a sudden wave of buying drove the metal up by 2% within an hour, pushing it toward record Comex highs reached in mid-May's_Most_Popular

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#3) On June 08, 2010 at 12:19 AM, binve (< 20) wrote:

I agree TS, that is what I am  watching too. Thanks!

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#4) On June 08, 2010 at 12:25 AM, 1315623493 wrote:

If there were a snapback, there would be no logical reason for it, and I would think the sellers would overwhelm buyers into the potential rally you're talking about. The fundamentals are overwhelmingly pointing in one direction and that's down. The only positive blip on my radar is rising consumer sentiment. Outside that, I see nothing. 

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#5) On June 08, 2010 at 11:49 AM, topsecret09 (83.94) wrote:

9 AM Pacific Time      holding.....    9847 DOW          U.S. Stocks Retreat as Chipmakers, Retailers Offset Bernanke             June 8 (Bloomberg) -- U.S. stocks dropped, adding to losses from the biggest two-day Standard & Poor’s 500 Index slump since March 2009, as falling computer shares and retailers offset Federal Reserve Chairman Ben S. Bernanke saying the economic recovery is intact.

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#6) On June 08, 2010 at 12:18 PM, topsecret09 (83.94) wrote:

Bernanke Says Unemployment Unlikely to Fall Quickly    

June 8 (Bloomberg) -- Federal Reserve Chairman Ben S. Bernanke said the U.S. recovery probably won’t quickly bring down the unemployment rate, which is likely to stay “high for a while.”

Given the depth of the recession, the recovery is “moderate paced,” Bernanke said last night in a question-and- answer session with Sam Donaldson, the ABC News journalist, in Washington. In Europe, policy makers “are committed to avoiding default in Greece” and elsewhere, he said.

While the Fed will raise interest rates from a record low before the economy returns to “full employment,” Bernanke said officials don’t know when that process will start. The banking system isn’t fully healthy and lenders are “cautious” in providing credit, he said.

“The unemployment rate is still going to be high for a while, and that means that a lot of people are going to be under financial stress,” Bernanke said at the event, part of a dinner hosted by the Woodrow Wilson International Center for Scholars 

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#7) On June 08, 2010 at 3:53 PM, topsecret09 (83.94) wrote:

 So far so good on the dow ..   Holds the level plus more for the day,lets see what happens tomorrow. Bought 100 shares of (SDRL)  @ $19.00  1000 shares of (EMKR) @ 87 cents   TS

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#8) On June 08, 2010 at 10:12 PM, topsecret09 (83.94) wrote:

Wednesday: Bernanke Could Call the Tune for Stocks    Fed Chairman Ben Bernanke's testimony before the House Budget Committee Wednesday could temporarily shift investor focus from Europe to the U.S. economy.   Bernanke appears at 10 a.m. and is expected to speak on the state of the economy. Bernanke also speaks at 4 p.m. at a forum in Richmond, Va. on employment trends. 

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#9) On June 09, 2010 at 11:58 PM, topsecret09 (83.94) wrote:

Bernanke warns U.S. of 'unsustainable' debt level

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#10) On June 10, 2010 at 2:10 AM, 1315623493 wrote:

I thought Bernanke was part of the plot to destroy America!? How could he actually warn of 'unsustainable' debt levels? He's the Fed chairman! He IS the debt! 


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#11) On June 10, 2010 at 5:26 PM, davejh23 (< 20) wrote:

It looks like we won't see a close below 9,750.  Now, what do you consider a "substantial snap back rally"?  One more good up day and we're back at the 200 day.  I'd bet on a big down day on Friday or Monday...opened new shorts at the end of the day.

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#12) On June 10, 2010 at 11:33 PM, topsecret09 (83.94) wrote:

 davejh23 It's possible to test 10,600 on the dow In the near term If we get good news about the economy,and Investors gain some confidence. Tomorrow should be very telling. Will It be another "sell off Friday" so you have no undue exposure over the weekend,or was the 9750 test that held for real ? The market  has snapped back pretty substantially off that number so far. The rally today was fairly broad,but many of the small caps did not participate.    TS

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#13) On June 11, 2010 at 7:12 PM, topsecret09 (83.94) wrote:

 Short term rally should continue next week.... Solid support at 9750 confirms a near term rally...    Lets see If we make It to 10,600 next week...   TS  Ho- hum....    

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#14) On June 11, 2010 at 7:46 PM, topsecret09 (83.94) wrote:

Dow posts first weekly gain in nearly a month     The Dow rose 39 points Friday and ended the week with a gain of 2.8 percent, its best weekly advance since mid-February. The market slid in morning trading on disappointing retail sales numbers but started to pare its losses after a report found consumers are gaining confidence in the economy. The market climbed in the last hour of trading to end near the highs of the day.        Some fools believe In Ol Topsecret anyway......    :)

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#15) On June 12, 2010 at 4:11 AM, 1315623493 wrote:

Finally, I wonder where it goes from here. My model says downward unfortunately :-( if you're long that is ;-)

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#16) On June 14, 2010 at 5:45 PM, jason2713 (< 20) wrote:

Looks like we are going lower, I guess we'll find out.

Any headline can make this market turn any which way. It's pretty sad, the fundamentals are in the news...not in the numbers.

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#17) On June 15, 2010 at 2:18 PM, topsecret09 (83.94) wrote:

 So far so good on our ride back to 10,600...    Should be considerable resistance to break back through at this level. I will be selling Into strength around this level,and see If we pull back...   If it pops through this level on the close we will be heading back to 11,000. I personally think It will back off at the 10,600 level and remain range bound between 9800 and 10,600 In the near term at the least....    :)    TS

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#18) On June 20, 2010 at 9:30 PM, topsecret09 (83.94) wrote:

  Get ready to hit the sell button on Monday June 21st at or near the 10,600 level on the dow. Look for a CLOSE above this level to confirm another leg up,If not,we are probably range bound In the near term....   TS  

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#19) On June 21, 2010 at 10:51 AM, topsecret09 (83.94) wrote:

See above........  TS  :)

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#20) On June 29, 2010 at 10:45 PM, topsecret09 (83.94) wrote:

 Well, here we are again ready to test 9750... Any CLOSE below this level would take us to 9200,,,   If we hold again It's right back to 10,600 and Range Bound...   TS

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