WEEKEND STOCK MARKET MASALA- NOV 07, 2009

PART I: BEARISH COUNTS (P2 TOPPED AT 1101.36 AND CURRENTLY IN P3. WE FINISHED MINUTE [i] AT 1029 AND CURRENTLY IN OR FINISHED MINUTE [ii] TODAY AT 1071.48 AND ABOUT TO BEGIN MINUTE [iii] DOWN TO 1000-1020) -

1. From Kenny-

http://2.bp.blogspot.com/_goypolxEFd4/SvNeCpLKY...

2. From Binve-

http://3.bp.blogspot.com/_OpWmYZm7O8I/SvSE8EQsH...

3. From Alpha-

http://2.bp.blogspot.com/_-p17nqJfPI8/SvSQDtBxu...

4. From Patmcneil-

http://4.bp.blogspot.com/_rU1O_fAnSHQ/SvSVrnTXR...

5. From Pugridiron (He is bearish short term and bullish Intermediate term, sees 1000-1020 and then 1150-1200)-

http://1.bp.blogspot.com/_9Sqz0bUVklI/SvSaDkGII...

PART II: BULLISH COUNTS (INVERSE HEAD & SHOULDERS)-

1. From Daneric (Daneric is also in P3 camp and currently in minute [ii]. However his minute [ii] target is 1080-1090)-

http://2.bp.blogspot.com/_TwUS3GyHKsQ/SvS3WuVZZ...

2. From Brinkley-

http://3.bp.blogspot.com/_oqKj7JIlUso/SvPC5CGxM...

3. From Kemal ( He sees us dropping to 1050 form 1074-1076 and then a rally to 1100)-

http://www.screencast.com/users/Kemal_1/folders...

This is what KEMAL says-

"Basically, I labelled the correction down to 1029 as a second X wave. So I have one final abc move left for a rare triple ZZ. That last abc is it when I refer to wave (a).

The SPX is in a VERY tricky situation. I am watching two potential set ups.

1. The inverted H&S formation could form much smaller left and right shoulders than what one would think on first glance.

2. A so called leading diagonal (LD) could be forming in the wave (a) position. Right now, the fourth wave would be forming. I give this formation quite some credibility. The final fifth wave should be an acceleration to the 1074 - 1076 area. It could happen end of day OR first thing Monday morning. IF such an acceleration (or gap up on Monday morning) happens, GET OUT as fast as you can.
The reason is that an LD is followed by a very sharp retracement, likely down to 1050. This retracement could last 2 - 3 days.

I don't expect any drop today. Even after the sharp retracement, if it happens, new highs are certain. So the major market direction is up."

PART III: POTENTIAL EARNINGS PLAYS FOR NEXT WEEK (CHECK ANNA'S HOB SITE)-

PCLN, GOLD, GMCR, JWN, URBN, WMT, MIDD, ANF, JCP, DIS, SINA

PART IV: OVERSOLD STOCKS WATCH LIST WITH IDEAL TARGET ENTRY PRICE

Here are some stocks that are oversold and my ideal target entry prices. The exit price would be about 7-10% from the target entry price-

NTRS @ 48-49, STT @ 38-39, GRMN @ 23-24, OXPS @ 14-14.2, STEC @ 12.5-13.0,

ILMN @ 30-31, WFR @ 12.0-12.3, AMGN @ 50-51, NRG @ 22-23, PALM @ 9.5-10

APOL @ 54-55), FSLR @ 114-115

PART V: AMZN & BIDU

1. To those who are shorting AMZN-

Daneric posted this on Oct 26th. His target on AMZN was 130

http://1.bp.blogspot.com/_TwUS3GyHKsQ/SuZXSV9PG...

2. BIDU: Daneric called the top in BIDU just before earnings and I took advantage of it with options :-)

http://4.bp.blogspot.com/_TwUS3GyHKsQ/Sui4yruLw...

GLTA