Fri Apr 16 2010 — Weekly Recap
Friday, April 16th, 2010Weekly Summary
GS is being charged by the SEC with civil fraud, this resulted in a market sell-off on higher volumes. Greece may head toward a bailout by the EU/IMF. The USD strenghened against the EUR and thus, commodities sold-off as well.
Multiple negative catalysts are in-play for next week:
1. Continuation of Greece’s problems; Portugal & Greece CDSes moved up –> more expensive for them to borrow.
2. Sell the news — earnings had been good with INTC, JPM, UPS, GOOG, CSX.
3. GS spill-over to other big money center banks that originated CDOs — C, BAC, JPM
4. VIX multi-year lows (15 — May 2008)
5. Major indices hit major resistance (200-SMA)
6. Bullish Index hits 52-wk high (SPX — 87)
7. Retail investors getting bullish
Major Indexes
S&P500 — Approaching 200-SMA resistance at 1,224;
Short-Term –> Expect pullback toward 1,126 (20-SMA)
Medium-Term –> Expect pullback toward 1,050 (50-SMA)
DJIA
Nasdaq
Russell 2000