June 4 Lows at Risk

George Brooks |

June 4 Lows at RiskInvestor’s first read - Brooksie’s edge before the open
Wednesday 25, July 12, 2012 9:15 a.m.
DJIA: 12,617.32
S&P 500: 1338.31
Nasdaq Comp.: 2862.99
Russell 2000: 767.75

My last post before going on vacation was on the 12th when I headlined, “June 4 Rebound Must Hold or Else.”

That hasn’t changed.

I wrote that key support at DJIA 12,450 (S&P 500: 1310) must hold to avert a greater decline, possibly to DJIA 11,500 &S&P 500: 1230). The June 4 intraday low was DJIA 12,035 (S&P 500: 1266). Breaking the “support” levels noted above would be a warning that an attack on the June 4 lows was at risk, so far my support levels have held.



But, odds favor another attack and odds favor the June 4 lows will be broken. In my opinion, there are simply too many balls up in the air right now to enable a sustained recovery. I still see a choppy slide into a fall buying opportunity.

Granted, some Q2 earnings will make good reading and the U.S. economy is in better shape than those in Europe and Asia. I just think the fog is too thick for the BIG money to be aggressive here.

CONCLUSION: I see a spike to DJIA 12,740 (S&P 500: 1350) as the market responds to better New Home Sales at 10 a.m., or expectations of a better Jobless Claims report tomorrow than last week, or just bounces technically, but the upside is limited for now.

George Brooks
…………………………………………………………………………
The writer of Investor’s first read, George Brooks, is not registered as an investment advisor. Ideas expressed herein are the opinions of the writer, are for informational purposes, and are not to serve as the sole basis for any investment decision. Readers are expected to assume full responsibility for conducting their own research pursuant to investment decisions in keeping with their tolerance for risk.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer

Companies

Symbol Name Price Change % Volume
T.PMT Perpetual Energy Inc. 1.00 0.04 4.17 24,916

Comments

Emerging Growth

Beleave Inc.

Beleave Inc is a biotech company. The Company is engaged in the production of medical marijuana under the Marihuana for Medical Purposes Regulations outlined by Health Canada.

Private Markets

The Green Organic Dutchman

The Green Organic Dutchman Ltd. ("TGOD") produces farm grown, organic cannabis for medical use. The company grows its high quality organic cannabis in small batches using craft growing, all natural…

iPRO Network, LLC

We provide the platform, tools, and resources to empower individuals and professionals to market desirable goods and services to the public, taking the place of traditional methods of commerce.