Day 1
Situation:
U.S. Markets: down heavily, especially in the last 30 mins. as reversal attempt faded … Financials tried a reversal but not very successful on renewed subprime fears, Tech hammered as interest rate cut fantasy goes out of the market
Asian Markets: Japan down on firm Yen … rest of Asia … “profit taking” (-4%)
Currencies/Commodities: Dollar hits new lows against Yen, recovering a bit against Euro. Oil profit taking …
Events: Monthly Bundesbank Report … U.S. Veteran’s Day
Dax: Lost in last trading hour about 1% … in danger of reversing last weeks buy signal …
supports … 7776/7772 … 7742 … Future levels … 7740-7720 strong cash levels … below … the “dark hole”
resists … 7860/7870 … 7920 … 7960 … 8070
Ideas: After last weeks outperformance to the upside, danger is a quick catching up … difficult to see any positive thing below 7720 Cash level … especially if we close there …
Strategy: Will be sidelined until a hourly reversal to the upside or break of 7720 cash level … below … just will hold short with a 7750 cash stop on an hourly close.
Tags: daily outlook, subprime
