The Dow is not beginning a new Bull Market, and needs to end the month above its 120-month simple moving average at 10,640 to be neutral instead of confirming a multi-year Bear Market. The weekly chart is not yet oversold, and the 200-week simple moving average should set the maximum upside in a trading range environment with that level at 11,744. The daily chart is still oversold and my first weekly resistance at 9,578 is now a weekly pivot. TARP shifts its major focus to taking Preferred Stock investments starting with Nine Major Banks. The FDIC is providing additional guarantees on new bank debt and certain deposits. Meanwhile, the Fed�s rate cut to 1.5% from 2.0% and the Conservatorship of Fannie and Freddie have not provided mortgage rate relief to homeowners, who are paying for TARP with their tax dollars. The yield on the 10-Year is up to 4.00% and the 30-Year fixed rate mortgage is at 6.16% the higher than before Conservatorship. These plans provide short term relief for stocks, but Richard Suttmeier�s List of Problem Banks has grown to 58 community and regional banks. I name names. To subscribe to my special report, �The Great Credit Crunch� and updates to Richard Suttmeier�s List of Problem Banks and new Richard Suttmeier�s List of TARP Banks, send an email to GMCReports@aol.com or to Support@ValuEngine.com.
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