Monday, October 25, 2010

DJIA and Nasdaq 100

DJIA and Nasdaq 100 for 25-Oct-2010 (Monday)

Howdy! We are now at the last week of October 2010 and moving into exciting November with FOMC and mid term election.

This week, there are 177 S&P 500 companies reporting their balance sheets, of which 7 or Dow components. Earnings will be the center of attention for this last week of October.

Tonight, Fed Chairman Bernanke is going to speak at 8.30pm ( GMT+8 ), Major economic data for this week includes existing home sales, durable goods orders and Q3 GBP.

Market is going to be consolidating in big swings this week, the growing speculation recent weeks that US Fed Reserve will extend the quantitative easing measures (QE2) as early as November -- has pressured the US dollar while boosting equities.

However, the selling pressure would begin this week while the market are generally anticipating the Fed meeting (FOMC) and mid-term elections in November.

Dow Jones Industrial Average (DJIA)

Closing: 11,132
Strong Resistance: 11,257
Current Resistance: 11,213
Support: 10,920
Strong Support: 10,750

Technically, DJIA is still capped below this strong resistance 11,257.
I have a feeling that the earnings and report this week will boost DJIA to create a marginal high at 11,257 or even 11,300 region.

I personally favour to Long for intraday trades, while observe for opportunities to short DJIA end of this week, or the coming week near the strong resistance level.

DJIA Trading Plan (Intraday)
Long 11,008 SL 10,920 TG 11,200

For Shorting Opportunities:
Short 11,220 SL 11,300 TG 10,920.

Nasdaq 100
Closing: 2,104
Strong Resistance: 2,147
Resistance: 2,106
Current Support: 2,055
Support: 2,010

Similar view as DJIA, Nasdaq 100 may have potential to head higher to test Dec-2007 high 2,147.

Nasdaq 100 Trading Plan (Intraday)
For Intraday favour to Long Nasdaq at 2,069 support and aim to take profit at 2,100.

Similar to Wink Market Raiders last Friday, for Shorting Opportunities:
Short: 2,112, SL 2,150, TG 2,055.

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