Weekend Update

Okay, so there's the latest weekly chart of the Dow. As you can see, the last four weeks have been rough for the bulls. Weekly RSI has now dropped below 50 also...and you know what that cause on the daily chart...these four weeks of selling. The thing is, everyone is talking about the selling pressure all of a sudden. That usually means we are in for a bit of turnaround soon. I think we use this even mark 8,000 as support soon. Not only can you see the 20-week MA sitting right there, the 100-day MA is also sitting there. There is just too much support for a petty break.

The thing that could break this big support level is a bad earnings announcement from a big name, blue-chip company. I would also expect some sort of reference to the consumer just not being there. I think with unemployment still on the rise, investors are really going to be glued to these earnings announcements, trying to get a glimpse about the consumer.

In essence, falling oil prices should lossen up the consumer's pocket, but you have to remember that oil prices just started their precipitous decline from $75 to $59 in the last week or so. Those savings aren't going to be reflected in this reports, but most likely next quarter's numbers if prices stay down. Plus, towards the start of the quarter, prices have been on a nice steady rise (until just lately). That should pinch out some extra money from these latest reports. Retailers might be the ones to bet down on with that in mind.

The big, individual news that came out on Friday and has continued over the weekend is the talk about CIT. The stock has really been volatile, so I'd definitely look to scalp it all day on Monday. There are talks going on right now about saving them, letting them fail, etc. Just know its going to open for a lot of trading on Monday and you should be ready to profit. DDRX continues its plunge to the 50-day MA support at the $16 area. I'm a buyer there depending on where the volume is when it gets closer.

SPNG is another name that I haven't discussed in too long. I'm still seeing the advertisements like crazy, so that just tells me there has got to be another run in this stock sometime. It is getting close to that .10 breakdown point, though. I'd short under that. APWR has popped up on the radar of Mr. Sykes lately. There isn't too much news really, I think he seems to be trying to push a lot of people onto this and make him some money. Just be heads up and look to profit off of it.

Also, Monday night will be the Home Run Derby. That's always an interesting watch if you like to watch baseballs get pounded close to 500 feet. The All-Star game should follow on Tuesday, so the boy's of summer should be giving us some entertainment in the days to come. Something tells me that there is no way it will top what happenend last year. Josh Hamilton was just plain ridiculous. We shall see.

MK