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The Fred Report - Mid Week Update July 20, 2011

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author/source: Fred Meissner, CMT


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The FRED Report – Financial Research, Education & Data

Mid Week Update

 

Volume 3, Issue 58

July 20, 2011

 

Download PDF Version here


Update of Market View

So far this week is playing out as we thought it might, and it looks to us as if this rally can take us to new rally highs on the SPX. Indeed, given the indicator set up, this represents the best chance we have seen all year for a decent, playable rally. Our forecast remains the 140 area on SPY (1400 or so on SPX).
There are a few signposts along the way and we will discuss those briefly. On the downside, we note that while SPY went intraday slightly through our objective of 130.50, OEF did not strike 58.03 (the low was 58.05).  We mention these points because we believe that the recent lows (OEF 58.05 and SPY 129.63) should be the summer lows – and these should not be retested before upside objectives are met. On the upside, exceeding 133.22 would suggest a test of the recent highs at 135.70 should be tested and, if exceeded, the next objective is the high end of the “Cambridge Hook” formation at 137.18 is next.
The rest of the week may chop around a bit to alleviate some of the short-term overbought readings, but we would not be surprised to see the market simply work its way higher. We will discuss sectors and such on the Thursday conference call – but we continue to believe very favorable earnings are coming in most of the sectors, and should we see some in Financials, that would be a big plus to support our positive outlook.

weekly_midweek_072011

Other Points of Interest

We show Monthly charts of the Midcap and Smallcap indexes:  MID and SML. The purpose here is to show that these indexes are very close to all-time highs. Given the news, short-term turbulence and such, it helps to step back to note that equities are doing pretty well here.

weekly_midweek_072011weekly_midweek_072011

 

 

 



DISCLAIMER: 
Fred Meissner is primarily responsible for the research in this report and certifies that: (1) all of the views expressed in this research accurately reflect his personal views about any and all of the subject securities or issuers; and (2) no part of his compensation was, is, or will be directly or indirectly related to the specific recommendations or view expressed him in this research.
 
This report is for your information only and is not an offer to sell, or a solicitation of an offer to buy, the securities or instruments named or described in this report.  Interested parties are advised to contact the entity with which they deal, or the entity that provided this report to them, if they desire further information.  The information in this report has been obtained or derived from sources believed by Fredco Holdings, Inc. to be reliable, but Fredco Holdings, Inc. does not represent that this information is accurate or complete.  Any opinions or estimates contained in this report represent the judgment of Fredco Holdings, Inc.  at this time and are subject to change without notice.  Fredco Holdings, Inc.  or its employees, officers, directors, principals, agents, affiliates or adviser may from time to time provide advice with respect to, acquire, short sell, hold or sell a position in, the securities or instruments named or described in this report.
 
Fredco Holdings, Inc. does not have investment banking relationships with any of the companies mentioned in this report and does not conduct investment banking business, in general.  Fredco Holdings, Inc.  and its employees do not receive compensation of any kind from any of the companies in this report.  Fredco Holdings, Inc. , its directors,  officers, principals, agents, advisers, affiliates and employees may maintain a financial position in the securities mentioned in this report, provided however that no buying or selling  activity will be taken with respect to a security referenced in a report by such parties within three days of such report’s publication.
 
The information contained herein was prepared by Fredco Holdings, Inc., which is solely responsible for the contents of this report.
 
Copyright 2010-2019 Fredco Holdings, Inc..  All rights reserved. This report is a publication of Fredco Holdings, Inc.  located at 4514 Chamblee-Dunwoody Rd, Suite 112, Dunwoody, GA 30338. 

 

 

 

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