Monday, September 28, 2009
Weekly Watchlist 9/28
From looking at some scans and other sector charts this weekend I think this correction could be more along the lines of 8-10% for starters. I would not be surprised to see 987 in the SPX soon as that is rock solid support. The transports are looking very weak and led the way down last week with the commodities as well. On top of this, the US dollar index daily chart is looking bullish and I think we could be at the start of an interesting short squeeze of a rally in the US dollar. The euro and aussie dollar look just the opposite and should selloff further imo. Oil broke some important trendlines last week as it came back to 66. I would expect crude to sell off further as long as the dollar rallies. You could easily see crude retest the 60 area.
Longs>> LLTC, WPRT, ATLS, RAI, LSI
Shorts>> HD, EXM, ADM, GRMN, PRU, BXP, HES