The Chart du Jour
The chart above has arrows depicting each of the recent 8.6 month PEI cycle dates. For the better part of the summer and early fall we had hoped that our October 11th cycle date (now upon us) would yield a cyclical time and price low near 1409 on the Nasdaq Composite and 942-944 on the S&P 500. Those price objectives were of course reached, but on the wrong day (September 24th), and we have now encountered a significant reaction rally into our important cycle date of October 11th.
In our minds, this price action, far from encouraging us that the worst of the equity decline is over, makes us worry that much further downside sloppiness may still be seen all the way until February (4.3 months hence, or a further half cycle). In short, stocks have rallied into the wrong day, and we see this reaction rally as being ill-fated in the end.
Maybe the October-February period will only be a messy one, with two-way markets of chop and disappointment, but further declines that are small in absolute magnitude. Our underlying patriotic spirit hopes so. But in the two charts below we have streched our Fibonacci bands ever further down the S&P 500 and Dow Jones Industrial price charts. Might 792 on the S&P and 6016 on the DJIA still be possible? Beyond our recent September 24th lows, these would be our next best Fibonacci targets.
We are re-establishing trading shorts on these two indices at this time, while in the already bombed-out NASDAQ, we'll simply abstain and stand aside. Allowing for all the volatility and noise in the markets, stop-loss orders are best left above 1111 basis the S&P 500 Cash -- if one can bear such a distance.
How Your Articles Are Delivered
Upon the processing of your credit card or the receipt of a personal check, Sand Spring will e-mail you the articles requested as a Word attachment, and also provide you with a WWW address and password to view the article on the web without using Word should you so desire. Confirmation of your order will be immediate, and the actual article will follow by e-mail typically within a few hours and in all cases before the opening of NYSE trading on the following day.
Ordering by Credit Card:
Our shopping cart is designed for both physical and subscription products, so do not be confused too much when it asks you for a shipping address. A correct address is important only for credit card authorization purposes. Your e-mail information is the most important piece of information to us for proper delivery of your article(s).
Sand Spring Advisors provides information and analysis from sources and using methods it believes reliable, but cannot accept responsibility for any trading losses that may be incurred as a result of our analysis. Individuals should consult with their broker and personal financial advisors before engaging in any trading activities, and should always trade at a position size level well within their financial condition. Principals of Sand Spring Advisors may carry positions in securities or futures discussed, but as a matter of policy will always so disclose this if it is the case, and will specifically not trade in any described security or futures for a period 5 business days prior to or subsequent to a commentary being released on a given security or futures.
If you order by credit card, your credit card will be billed as "Sand Spring Advisors LLC"
Take me back to the Sand Spring Home Page
Comments or Problems
Thank you for visiting Sand Spring Advisors LLC, Inc. We hope to hear from you again soon. For more information on Sand Spring Advisors actual programs, services, or to request a copy of a Disclosure Document, please phone us at 973 829 1962, FAX your request to 973 829 1962, or e-mail us at information@Sandspring.com
10 Jenks Road,
Morristown, NJ 07960
Phone: 973 829 1962
Facsimile: 973 829 1962
Best Experienced with
The material located on this website is also the copyrighted work of Sand Spring Advisors LLC. No party may copy, distribute or prepare derivative works based on this material in any manner without the expressed permission of Sand Spring Advisors LLC
This page and all contents are Copyright © 2000 by Sand Spring Advisors, LLC, Morristown, NJ