Prognosis: Grim…
Well,
sooner rather than later we’re going to see what Alan Greenspan is made of.
I’m crossing my fingers that the Fed chairman doesn’t let his ego overrule
what he knows is the right thing to do: an immediate rate cut. The banking
crisis in Japan gives Mr. Greenspan the chance to get himself out of this corner
he’s painted himself into. Whether it’s a downgrade of 19 Japanese banks, or
the imminent collapse of an isolated one or two (that’s what we’re hearing
on the trading floor), the Fed has reasons aplenty to give us what this market
so desperately needs.
We’ve
seen pretty heavy selling pressure, in futures, options and stocks since before
the regular trading session began. Sellers have slammed every attempted rally.
Given the overhanging issue of tax selling by insiders (a future column) and the
dismal economic outlook, I believe we’re facing continued selling pressure.
Before we get out from under this climate of gloom about the economy and profits,
we need action and we need it quick!
Having
given you the ugly prognosis, I will offer the antidote for the disease. 1) The
Fed needs to take action, 2) The Democrats and Republicans need to get the tax
cut passed in the Senate, 3) Investor confidence will return. Unless Alan
Greenspan wants to see this market down 1,000 points, he’d better get going.
Bearish $ Weighted Call Action
|
Symbol
|
Volume
|
Volume
|
Call
|
Put
|
|
SPX
|
21,657
|
39,095
|
394,623
|
1,757,988
|
|
NDX
|
3,941
|
1,902
|
61,001
|
469,819
|
|
CIEN
|
6,375
|
12,025
|
20,966
|
159,852
|
Bullish $ Weighted Call Action
|
|
Call
|
Put
|
$W
|
$W
|
|
Symbol
|
Volume
|
Volume
|
Call
|
Put
|
|
AMGN
|
5,255
|
2,272
|
33,762
|
10,644
|
|
MU
|
15,036
|
1,627
|
60,961
|
7,443
|
|
CPQ
|
11,198
|
775
|
21,829
|
2,147
|
(1010WallStreet.com
has licensed the use of Hamzei Analytics proprietary options analytics)