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Tuesday, August 3

DOW Technicals

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The DOW is experiencing weakness at its resistance level of 10630 as seen in January. Any bad news would definitely cause the DOW to weaken to the next support of 10500, and major bad news would cause the DOW to weaken to 10150 which is a major support due to several intersecting trend lines.

Any good news would allow the DOW to climb slightly higher.

ECONOMIC DATA
1. ADP REPORT – must be above 30k
2. ISM Non-Manufacturing PMI – must be above 53
2. Unmployment Claims – must be below 460k
3. NFP – must be more than –80k

HINTS of poor economic data
1. Lower factory orders
2. Poor housing sales

GOOD NEWS this week
1. Improved Car sales. 12.1M vs expected of 11.5M
2. ISM Manufacturing PMI came in better than expected

Positions:
Sold BAC, AA, LVS, MT
Short LVS (small quantity)

1 comment:

Anonymous said...

Barrons and Bernstein talking $20 for BAC. Do you see BAC hitting 18-19 before start of 2011?

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