AG's Scratchin' Post

[Alex G]

Weekend Chart Show: November 7, 2010
http://www.kirkreport.com/10/wcs_11_7_10.pdf

Last week’s scenarios: The most bullish first scenario continues to work and
was exceeded

What Did We Learn This Week?
- Big week for the markets and the market performed really well (key
technical hurdles cleared)

- Everything is coming up roses: good economic data and earnings, an easy
Fed, gridlock in Washington, and on top of that plenty of skepticism and
concern

- What is the best sentiment indicator of all? The market - performance
anxiety trumps everything - disbelief remains and the good news wasn't
"already priced in"

- Financials finally caught a bid, finally woke up from the dead & Dow
Theory confirmations (* XLB has not overcome all time highs, just set new
two-year highs which I said incorrectly in the presentation)

Things To Watch Next Week

- Market will be on the hunt for fresh catalysts (it will be important for
M&A deals, good bonuses or other positives to surface)

- November has a strong positive seasonal bias BUT tends to chop around midmonth
bookended with strong rallies (most risk for a correction will occur
during options expiration)

- Respect the buy programs - another POMO on Monday - watch for the gap
opens to continue and strong late day closes when the market is soft

Bulls need to see...
- Russell to take out April highs
- Russell to generate weekly ATR buy signal
- S&P clear & hold above key Fibo level 1,230
- Number of stocks making new highs jump

Bears need to see...
- Failed breakout - a 110% give back of last week's gains and then some
taking out the 10/20