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StreetOne Technical Analysis, LLC Market Summary-09/01/2010

|Includes:Direxion Daily Financial Bear 3x Shares ETF (FAZ), SKF

 by David Chojnacki

After a weak open, the Market quickly reversed into positive territory on the Consumer Confidence number. The indices then traded sideways till the final hour when sellers took them down to near where they closed the day before.  At the close, the DJIA was up 4.9 points, the S&P500 up just 0.4 point, and the Nasdaq100 down 4.6 points.  Breadth was nearly even, with a slight edge to gainers, on above average volume. A significant portion of the volume was at the close.  For the month, the DJIA lost 4.3%, the S&P500 dropped 4.7%, and the Nasdaq100 gave up 5.2%. The DJIA managed to hold 10000 again at the close, but traded as low as 9941 during the session. Near term support remains at 9925. Upside resistance continues at the 10355 and 10450 area.  The S&P500 remained below 1056 again, maintaining the downside bias, but bounced off 1040 intra day.  Near term 1040-1044 remains key support, with upside resistance now 1056 and 1070.  The Nadaq100 changed little, as did its technical landscape.   Near term support remains at 1750 with upside resistance at 1775 and 1800.  Yesterday’s choppy action was an indication of the type of action we noted for the week.  The VIX lost 4.2% to 26.05. 

 

Trading Trend

Long term, bias remains to the downside, as the indices continue below some key longer term indicators.  Short term downside bias continues, but we remain within a wide range.  Near term, we closed below 1056 again in the S&P500, keeping the bias to the downside.   A couple positives in yesterday’s action in that we bounced off some key support areas.  Several indications recently that we may be trying to build a near term bottom.  Considerable economic reports scheduled this week that can be Market movers.  Today’s futures(at 8:15am) are moderately higher versus fair value. The European debt crisis and U.S. economic recovery confirmation are the top Market movers.

 

 

Major Economic Reports Today:

ADP Employment-8:15am     Construction Spending-10:00am    ISM Index-10:00am                              Crude Inv.-10:30am    Auto/Truck Sales-2:00pm        

 

MAJOR INDICES Short term support and resistance level

DJIA

(close 10014

SP500

(close 1049

N100

(close 1767

10000

10129

1044

1056

1750

1775

9925

10150

1040

1062

1736

1795

9915

10225

1035

1070

1732

1800

9908

10256

1029

1074

1728

1816

9850

10261

1025

1082

1713

1822

9841

10266

1022

 1086

1700

 1830

9810

10297

1016

 1093

 

 1835

9725

10355

1010

 1096

 

 1838

9650

10366

1000

 1100

 

 1850

Click to enlarge

 

Trade Ideas

Day Trade

FAZ(Direxion Daily Financial Bear 3X)-16.73.  Traded within the range noted as 16.50-17.50 yesterday.  An opportunity to trade the range or play a breakout over 17.50.  Futures indicate an open to the downside.  Similar trade is SKF(ProShares Ultra short Financials).

S1F in the News: http://www.streetonefinancial.com/news.html

 

DISCLAIMER LANGUAGE

ALL PRICES NOTED IN THIS PUBLICATION ARE AS OF THE CLOSE ON TRADING PRIOR TO TODAY’S DATE, UNLESS OTHERWISE INDICATED

This publication is neither an offer to sell nor a solicitation to buy any securities mentioned herein. The information contained herein is based on data obtained from recognized sources that are believed to be reliable. Street One Financial LLC (S1F) and Emerging Growth Equities, Ltd. (EGRO) have not independently verified the facts, assumptions and estimates contained in this publication. Accordingly, no representation or warranty, expressed or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information and opinions contained in this publication. The information contained in this publication is not and does not purport to be a complete analysis of every material fact respecting any company, industry, ETF or other security. Additional information concerning this publication may be available on request, if available. Many of the securities mentioned in this publication involve a higher degree of risk and more volatility than the securities of more established securities. For these and other reasons, the investments discussed in this publication may be unsuitable for investors depending on their specific investment objectives and financial position. Each investor should complete his or her own additional investigation and assessment prior to making investments in any securities. Transactions in securities mentioned herein may be effected only in those states where such securities are qualified for sale. Street One Technical Analysis LLC is an independently owned Company from Street One Financial LLC (S1F). S1F is an independent Company specializing in ETF’s, equities, and options utilizing the Broker/Dealer services and licenses of Emerging Growth Equities (EGRO), a fully registered Broker Dealer and member of SIPC/FINRA. All Partners of S1F are employees of EGRO. Through EGRO, S1F specializes in agency ETF/ETP, equities, and options trade execution. On the ETF/ETP end, S1F may work with the ETF issuers to understand their products more thoroughly and how they can complement an investor's portfolio.                                                                      © 2010 Emerging Growth Equities, Ltd

 



Disclosure: No positions
Stocks: FAZ, SKF