Wednesday, September 12, 2007

Support, Resistance, and Market Views for Mid-Week

* Support Becomes Resistance: As the daily chart of the ES futures notes, the 1500 level, which had been market support is now serving as resistance. With an important Fed meeting looming, the big market question is whether an interest rate cut would be sufficient to vault us above this level. It seems to me that a cut is baked into market expectations, perhaps leaving us more open to disappointment than surprise and euphoria. Note how equity prices have changed very little since early August despite significant volatility.

* Joining the Gold Rush: The Raw Greed blog outlines the precious metals stocks that they are following closely as gold rallies.

* Recession in the Works?: The Kirk Report links several worthwhile perspectives on possible economic weakness ahead.

* 20/20 Hindsight: Excellent post from A Dash of Insight on outcome bias and its effect on traders and investors.

* Promising ETFs: Tom Lydon and Seeking Alpha note opportunities in water and high yields.

* Who We Need for the Current Crisis: Financial Ninja makes the case for a Paul Volker in today's markets and examines the evidence.

* Interpreting Spikes in Options Volume: Lots of call volume might not mean what you'd think. Here's an excellent perspective from Daily Options Report.

* Congratulations on 1001! - Abnormal Returns does such a fine job of finding relevant and worthwhile posts on markets and the economy, including their 1001st post, which includes a look at how much recession is already priced into markets.

* Know Your Symbols? - InvestorGuide offers its Ticker Game as a challenge to traders.