Monday, January 26, 2009

Futures Bounce Between Gains, CAT Cuts Jobs And Earnings Outlook

This a time in history when some will survive and others will fail. You can see just what I mean with news from three of the biggest companies announcing completely different items. (CAT) is going to cut nearly 20,000 jobs and cut its 2009 profit outlook. At the same time (HD) is also going to cut 7,000 jobs, freeze salaries, and exit the expo business. Now the good news company (PFE) Pfizer, which is going to make another huge acquisition of Wyeth for $86 Billion. Clearly you can see why the markets are having a hard time digesting all this news.

As usual, I have posted the S&P intra-day support and resistance targets below. I cannot stress enough how important it is to use these levels in your trading strategy! As we reach each level, you should be making bets for 1 t0 2 day reversals. Naturally, at the more overstretched levels you can make higher value trades.



I think that very soon we will see a dramatic move in the markets, whether it's led by the bullz or the bearz is unknown. If you are not a member, I suggest you sign up soon to take advantage of these great trades and before the membership price goes up (more on that later this week). Happy Trading!