Frank Gretz 
Robert Cummins 
Raymond Moore 
Ivan Obolensky 
Alan Silverman 

CLICK HERE FOR PREVIOUS "EQUITIES PERSPECTIVE" IN DATE ORDER

 

                                                                                                                               July 2, 2009
                                                                                                                               DJIA: 8,504
 

If you want to make God laugh . . . predict stock prices.  Although one prediction with a high probability is pretty simple: trading range.  After all, the market spends two-thirds of the time going nowhere and that, as it happens, is pretty much what the S&P has done for the last two months.  Even Monday was more trading range than rally.  Sure the Dow rose 90 points, but that happened in forty-five minutes and the rest of the day was flat.  Granted it’s the end of the quarter and there’s rebalancing after the rebalancing, but there’s always something.  It’s never easy but it’s easier to be observing than predicting, in this case observing 880 and 950 in the S&P.  We’re in this trading range, but the trend is still up.  And at least in any important way, the market is yet to do anything wrong – no important divergences.  And one might argue the market had its chance last week to break 880, the lower end of the S&P’s range, but didn’t.  Holding up isn’t going up, but it also isn’t going down.  Taking out 880 might not be as important as we’re making it out to be, but you have to draw the line somewhere and 880 would be pretty much it.

 

Click here for full report and technical charts

Note
: Adobe Acrobat Reader is required in order for you to view the above files. If you do not have Adobe Acrobat installed, please visit Adobe's website (www.adobe.com) or click here to download the free version.

 

Any opinions made in this report are those of the individual making them and may or may not be those of Shields & Company. Shields & Company, its affiliates and subsidiaries and/or their employees may from time to time acquire, hold or sell a position in the securities mentioned herein. While this report has been prepared from original sources and data we believe reliable, we make no representations as to its accuracy or completeness, and our opinion is subject to change without notice. Additional information is available upon request.


 
 
 




[ About Us | Shields Account Access | Analyst Commentary ]
[ Investment Ideas | Market Analysis | Contact Us ]


140 Broadway, New York, NY 10005     Tel: (212) 320-3000      fax: (212) 320-3040
Email: ShieldsNYC@shieldsandco.com