Monday, May 7, 2012

Snippets from 2 Wall Street Veterans to start the week...


To start the week here are 2 snippets from well known Wall Street veterans:

Jeff Weiss-

 The lower-1400’s S&P 500 Index region (weekly closing basis) has been regularly identified as a northerly barrier on several technical fronts in this column, reflecting the technical import we give it. Potential S&P 500 Index support still resides in the vicinity of its updated trend line (shown below) on its daily closing basis graph dating back to last August and currently just above 1360. Below that, we’d continue to use potential protection on both a daily closing and a weekly closing basis just above the 1340 mark.



Stan Weinstein-
...we aren't yet "officially" bearish on this trend. In the meantime, before moving on to the intermediate term outlook, as we've stressed for the past few weeks, it's important to note that there are a few "early warning" long term negatives that we have to be aware of, such as the low level of Bank and Mutual Fund cash reserves (at 4.78% and 4%, respectively), as well as the relatively high level of Insider selling. But there still is more that's "right" than "wrong" with this trend, so while we've downgraded it to only a moderately positive position, we don't yet view it as being bearish (but, as we said earlier, if the intermediate term levels, which we're going to focus your attention on in a moment, all give way - on a closing basis - then the trend rating will be lowered further, to neutra
l).

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