Market: A positive bias for now
The market’s continued strength since its 8/16 intraday lows is now reflected in a mixed but positively biased overall trend picture. I wouldn’t want to underestimate the upside potential of this move at this point and for now am inclined to sell puts into any near-term downdrafts – but at the same time I’m well aware that there may yet be another “shoe to drop” in the coming weeks/months.
Key near-term downside support is now at about 1450-1460 and 1430 for the S&P 500; 840-845 and 830-835 for the Russell 3000; 2535-2540 and 2500 for the Nasdaq; and 13,200-13,250 and 13,000 for the DJIA. Overhead resistance is now about 1490 and 1500-1505 for the S&P 500; 855-860 and 865-870 for the Russell 3000; 2580 and 2610-2620 for the Nasdaq; and 13,450-13,500, and 13,700 for the DJIA.
New positions
No new positions this week.
Watchlists
Stocks of interest showing up on this week’s “upside strength” scans include Bally Technologies (BYI), Benchmark Electronics (BHE), and EMC Corp. (EMC).
New candidates of interest on the “oversold” scans include Aegon (AEG), Boyd Gaming (BYD), Diebold (DBD), Hershey (HSY), Novartis (NVS), Peabody Energy (BTU), and sanofi-aventis (SNY).
