Novice Investing - Market Analysis

Date: Monday 13th 2008f October 2008 06:11:02 PM

Market Analysis 04/30/2005

By: Novice Investing Staff

The major indices broke important supports a couple of weeks ago. NASDAQ fared the worst and it has broken its 3 year trend line. For now, it is better to avoid NASDAQ high growth stocks such as Taser (TASR) or TravelZoo (TZOO) and waits until NASDAQ technical improves. My guess is NASDAQ will bottom around 1750. But that is still months away. Currently NASDAQ stands at 1921.

I was bullish with the major indices. Not anymore. I expect them to either move sideways or head lower over the next several months. Only DJIA still hangs on its uptrend line. But then again, DJIA consists of only 30 stocks. The rest of the stocks, most likely will not fare well based on the technical condition.

For possible buying opportunities, watch for the red line in the graph for the three major indices. Fundamentally, US companies are reporting mix results. It is not as bad as what the technical suggests. My prediction is that most likely all the indices will move sideways for the rest of the year with bottom of NASDAQ at 1750, DJIA at 9600 and S&P 500 at 1060. The top will be the high reached in early January 2005.

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