DJIA and Nasdaq 100

Lost a couple of trades, lost my phone last Friday, and confirms that my cd player is broken before weekend.

It was a fun filled weekend, I had a short trip south to Singapore, love people, love Shiraz, Clark Quay, love Shang Palace 香宫.  Love food, love friends, love dancing.

Had too much of good food since last Monday.
Blessed tummy, blessed taste buds.  Thanks!

I reached home by 3:30 am (about 2 hours ago), took a quick bath and I think it is a good idea to review for this coming week, before sunrise.  So, here we go.


For the week starting 15-Oct-2012

Reporting season is heating up, with only 6% of S&P 500 companies having reported, 59% of companies have topped estimates – less than the average beat rate of 67% for the past 4 quarters according to Thomson Reuters data.
Half of companies have beaten on revenue, while a quarter missed profit forecasts.

Trading could be volatile for Nasdaq 100, I have trigged SL and I prefer staying out.

This week we will look ahead to economic data on retail sales, consumer price index (CPI) for September, and existing home sales.

Technical Forecast

DJIA has a losing week and it is hovering between 13350 and 13300, as you know I was hunting for long, and I have entered two long orders, both has been stopped out.
Last week was also a losing week for me.

With the earning reports coming up, I believe this week to be another volatile week.

From the weekly candle, it has confirmed a bearish momentum, but daily chart is showing support – we mentioned the crucial support level 13350 for past 2-3 weeks, and DJIA is already trading around crucial support 13350, breaking below 13300 would confirm bearish trend for next 2 – 3 weeks.

Once 13300 strong support was broken we expect DJIA return to 13000 (the lowest level in early September).

Stay out - unless market shows strength and renounce at 13300 pts., it shall then return to 13500 resistance.
Or else market break below 13300, it will plunge all the way to 13000 pts.

Cheers, I am going to hit the bed,
Ayumi