Dow 30 Nov 05 to Nov 09 Outlook

By News Robot

Lawrence’s Comment

Recap
Hurriance Sandy removed 2 trading days off the week and that impact showed up clearly in this compressed trading week. Quick flush back down to right above Y-1 and then took off to 13200 half gap above. After NFP report, Dow simply sold off all the way back down. Closed the week near week low and below midpoint.

Outlook
As expected, a lot of effort was made to keep Dow from falling below the 13000 level. Yet, the unloading of stocks by institutions at the end of the week dominated the tape.

Two questions have to be answered. First, will the claimed “trading mistake” on Apple turn into full scale collapse of a fund? Second, which scenario will unfold after Election?

If there is no significant events to deal with, I am looking for a flush down to B-2 / B-3 area before a bounce can happen.

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