George Brooks: Up - Down - Up

George Brooks  |

Monday’s blog: “Week of Opportunity – Be Ready.” Tuesday’s blog: “Week Offers Opportunity for Gutsy Trader.”

Obviously, the market is held hostage to the uncertainties arising out of the Mid-East and Japan. However, speculators in Japanese stocks stepped over night to drive the Nikkei 225 index up 5.7%.

Today: Expect a scramble to buy following a mixed open, driving the DJIA up to 11,984 (S&P500: 1298), a correction, then a late day rally, all assuming no worsening in the news out of the Mid-East and Japan.

Brooksie’s Daily Stock Market blog
-an edge before the market opens

Wednesday, March 16, 2011 9:08 am EDT

DJIA: 11,855.46
S&P500: 1281.87
Nasdaq Comp.: 2667.33
Russell 2000: 791.33

Yesterday’s lows hit DJIA 11,696 and S&P500 1261, close to my projected support of 11,700 (S&P500: 1260), before rebounding to recover two-thirds of the day’s loss.

The market has behaved incredibly well considering the recent sharp increase in the price of oil, unrest in the Mid-East, and the earthquake/tsunami in Japan, plus a radiation risk, to boot.

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One caveat: One of the pillars to this markets’ stability has been positive surprises in the economy. However, if this week’s economic reports fall short of projections, this market will have to find a new comfort level.

The Street doesn’t expect any unpleasant surprises. Clearly the Fed doesn’t expect any per its guardedly optimistic statement yesterday, I see no reason to either, but on top of what’s happening in the Mid-East and Japan, the third largest economy in the world, this market needs good numbers, especially Thursday when we get the CPI, Jobless Claims, Industrial Production, Leading Indicators, and the Philly Fed Survey. Friday is Quadruple Witching Day when we get the expiration of stock index options, futures, stock options and single stock futures, all in one day.

Housing Starts and Producer Prices came at 8:30 today but will be priced -in at the open, along with news out of Japan, and the Mid-East.

George Brooks
Note: Yesterday was my first post to this web site. I sent it to regular readers before the open Tuesday, which is my regular practice, but encountered a problem posting here, ergo the delay.

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