Courtesy of Robin Hood Trader
THE WEEK THAT WAS: 4/6-9/2009
OTHERS HAVE BEEN CALLING FOR A RETRACEMENT TO RE-TEST THE LOW FROM MARCH 6TH, HOWEVER, ROBIN HAS BEEN CONSISTENTLY AND ACCURATELY PREDICTING THE MARKET AND HE CALLED FOR A CONTINUATION OF THE RECENT BULL RUN. ”I GOT THE DIRECTION RIGHT LAST WEEK BUT THE MAGNITUDE OF THE MOVE WAS NOT QUITE THERE. I KNEW THAT FOR THE MOST PART, THERE WOULD BE LOW VOLUME DUE TO THE SHORTENED TRADING WEEK AND AS SUCH IT WOULD BE MORE DIFFICULT TO MAKE THE ENTIRE MOVE UP TO RESISTANCE LEVELS. WITH EARNINGS SEASON KICKING INTO GEAR NEXT WEEK AND EVERYONE BACK FROM THE HOLIDAY WEEKEND WE SHOULD RESUME OUR MOVE HIGHER.”
Last week’s comments published on 4/4/2009:
DOW: “I feel we are still going up with my first target at 8315 and then 8405”
SPX: “We will continue to rise to challenge 875”
COMPQ: “The COMPQ is going up to challenge 1666.”
Monday, Mike Mayo an analyst with Calyon Securities downgraded the financials with his “Seven Deadly Sins of Banking” and the DOW closed down 42 points.
Tuesday kicked off earning season with the likes of AA and MOS. GM is looking to file bankruptcy and AIG was shopping their asset management business as the DOW continued yesterdays’ decline by falling another 186 points.
Wednesday, the Treasury opted to extend bailout money to the Life Insurance Industry. Pulte Homes announced plans to acquire Centex and the FOMC minutes predicted slower growth for the next 1 ½ years. The DOW sorted through this information and closed higher by 48 points.
The trading week finished early due to Easter with Thursday’s action posting big gains as WFC blew the doors off their earnings. The DOW registered a 246 point gain.
Last Friday’s close to Thursday’s close this week posted gains on the major indexes with the DOW up 65, the SPX better by 14 and the COMPQ gaining 31.
CHARTS WEEK ENDING 4/9/2009
-The DOW will continue higher to test the double top from January/February. The first test will be at 8315 and then 8405. If it breaks those levels, it will move higher to challenge the swing high at 9088 from the first of the year.
-The SPX is going higher to test the double top at 877 from late January and mid February. From there, the next stop is the double top at 918 from December ‘08. I believe it will eventually hit the swing high at 944 from early January.
-The COMPQ should test 1666 this week. If it breaches that level, we have a straight shot to the swing high of 1786 from 11/4/08.
