-----  pitbullinvestor.com SUBSCRIBER AREA

Navigation Home Weekly Buy Signals Short-Sell Signals Premium Charts Premium Options Nightly Commentary StockTables.com Crash Index Sector Rankings IPO Filings Sector Fund TIming Past Reports Excel Format Crash Index Industry Rankings Investor Links Pitbull Order Form

PITBULL INVESTOR© MARKET UPDATE & COMMENTARY For Tomorrow 09/07/2001 (Past Sample Report) Online since 1993

Updated by 6PM PST. If not today's update hit RELOAD/REFRESH or quit browser to clear cache...especially with Internet Explorer

DOW/NYSE OUTLOOK LONG TERM,(3-6 months)-NEUTRAL TO BULLISH, all indices INTERMEDIATE, (1-3 months)-BULLISH DOW,neutral NASDAQ SHORT TERM,(1-4 weeks)BULLISH DOW-neutral to negative NASDAQ/SP "SMART MONEY" PROXYTRADER FAQ ON SIGNALS PAGE! COMMENTARY FOR FRIDAY'S MARKET Fear levels increased out of the chute this morning, forcing a downside gap on the SP500 that. of course, provides another upside magnet for either short covering or bona-fide rally. The real question is whether or not there is a real sense of selling panic to come, or whether the withering of the last few days is simply viewed as another short term opportunity for momentum traders. The DOW got hammered for 192 points, making a 5 month low in the index, as it trimmed off 1.9%. Tne NASDAQ comp was off 3% and the SP blew through near-term support. The real negative was the NAPM services sector report out this morning, coming in lower than the previous report, even as the NAPM manufacturers report blew out bearish expectations with the largest gain in many years. So, investors and traders alike are awash with mixed economic news that is becoming harder and harder to decipher. With our Proxytrader system, SP and NASDAQ bear proxies from Rydex and Profunds are offsetting and gaining over the weakness in the DOW bull proxies. We still believe the DOW has the best potential to lead these markets higher as we move later into the month. I for one, am most happy that we are seeing some more downside in the Techs and SP, particularly if we can pull off a successful test of the April lows. This will set up for an even more powerful supportive atmosphere if we can get all of the indices lined up. Today's hot story was the DOJ decision to call off any attempt at slicing and dicing Microsoft. Generally, after a brief flurry of buying, traders shrugged off the news as more ho-hum and prices dipped once more. What I think has been overlooked is that Microsoft will ultimately get what they want anyway. The penalties will be in the form of preventing Microsoft from specifying what bundles will be offered by the box makers, leaving the choice up to the best needs of the consumer. Let's face it...the reason for the early release of the XP operating system was to let the genie out of the bottle, and the high level of program integration will make it nigh impossible for the box makers to put together a package that can compete in such a manner that the bulk of users will not specify that they want a totally integrated package-ala-Gates. Those that do not take the integrated box solution will just end up paying higher end-user prices to add the modules at some future time. Microsoft will cry all the way to the earnings table. Today's downside close left the door open for disappointing guidance from Intel, but they came in with estimates, albeit at the low end, but even as they were subdued in their forward vision, did make a case for larger than anticipated P-4 demand and brighter prospects for the future. Will it make a difference in the morning? That depends first on the Employment numbers due out tomorrow. We have a real split in the markets now, over and above just the division between the SP, NAQS and DOW. Mutual fund managers are getting withdrawal requests in record numbers by beaten down investors, and are finding increasing demands for free cash. On the other hand, there is a "ton" of money that has been sitting on the sidelines waiting for "A Bottom", while a whole new breed of momentum traders have learned all about the virtues of shorting, and are using every opportunity to sell into rallies....just the reverse of their attitude during the "Hi-Tech Holy Days". Meanwhile, continue to watch and wait. Don't try to call a bottom to these markets. You don't want to miss the train...many will in the next rally, even if it IS just a monster short covering boom, but also don't be convinced that there are some magic levels that once hit are going to cause a green flare to go off. The recovery, when it does come, may well be a stealth one that creeps up in the same way that these markets have eroded. Support and Resistance Levels to watch: DOW: Resistance: 9900 Immediate Support: 9830,9800,9716 NASDAQ Comp: Resistance: 1715/1750/1761/1783/1803/1823 Immediate Support: 1700/1655/1619 SP500: Resistance: 1115/1125/1130/1137/1147/1155 Immediate Support 1110/1081 --==S&P PROXYTRADER SIGNALS==-- In addition to the trade-by-trade analysis on the new indices not covered in the basic manual, we will be adding other promised indices shortly. Meanwhile we have been concentrating on a stop system which has the capability increase SP/NASDAQ proxy gains by around 22% and DOW gains by somewhere around 30%, while at the same time reducing intra-trade drawdowns. More news on this shortly. Again, these are non-optimized, simple to follow rules that will be available to all existing ProxyTraders as a free update from our website. These signals are only updated on weekends since they are derived from the Traders Commitments reports published every Friday afternoon, holidays excepted. CURRENT SIGNALS: SEE THE 'SMARTMONEY" PROXYTRADER SIGNALS PAGE Check signals page for Bear and Bull fund stats. WE NOW HAVE A DEDICATED SIGNALS UPDATE PAGE WITH COT CHARTS, SIGNAL AND FUND UPDATES AS WELL AS DIRECT LINKS TO THE GOVERNMENT CFTC FILES FOR MORE INFORMATION ABOUT THIS FREE SERVICE TO SUBSCRIBERS CLICK HERE http://www.daytradesignals.com --------=======TODAY'S TECHNICALS=======------------- CBOE PUT/CALL=.68 OEX PUT/CALL=.1.15 FLOOR TRADERS=NEGATIVE for the open tomorrow VIX=oversold levels again NYSE Advance/Decline: 1250/1857-net -623 McClellan Oscillator=--126 McCLELLAN SUMMATION=+1459 and dropping, needs to turn. PITBULL CRASH INDICES:see web page chart. NEW LOWS, NYSE=165 needs to get back under 40 on NYSE.. OVERBOUGHT/OVERSOLD INDICATORS=NASDAQ oversoldl, NYSE..oversold short term. ------------==============------------------ OVERSEAS: Asian and Canadian markets appear to be in bottoming territory. ------------==============------------------ ***INDICATORS*** (UPDATED DAILY only for subscribers)The PCI now includes major volatile market sectors. These numbers are updated overnight. Read on below for the rest of the numbers..... **VOLATILITY INDEX**One of the indicators I have talked about is the VIX. This is another indicator from CBOE whose full name is Market Volatility Index. This index, while it has no nice fixed number, (like >0 = oversold;<0 =overbought), can be best evaluated with the use of simple 20 period Bollinger bands. When the VIX rises to meet or exceed the 20 day upper band, you can generally count on a rally within the next two days....conversely, when the VIX drops near or through the lower band, you can expect the market to reverse and fail within the next two days....It doesn't ALWAYS work that way, but when used in conjunction with some other simple indicators can give you a pretty good idea of market direction near term. VOLATILITY INDEX (VIX) .. High band:27.88 Now: 28.65 Low band: 21.85 **Fair Value**For those who like to trade or watch the S&P and use that as a guide for what's going to happen to the market near term we look at three key computed numbers. FAIR VALUE is the S&P500 futures premium that is closest to balanced...no bias bearish or bullish. The BUY TRIGGER is that number which most large block trader's computers are set for that when hit will trigger them to automatically start buying "market baskets" of stocks. SELL TRIGGER is the reverse and causes to dumping of stocks.CNBC gives out their own version in the morning, but it is not accurate enough for daytrading. When you hear them talk about buy programs "kicking in" this is what they are referring to, and is the primary reason we see curb rules go into effect. Trader's computers are set for: Program buying at $3.18 FairValue for today is $1.43 Program selling at $.12 If you would like to watch these program trading premium execution levels during the day? ....Go to Real Time Indices and click on the $PREM.X and set the time to 1 minute...watch the fun. CBOE Put/Call Index: A measure of the Public attitude, Bullish, neutral or Bearish,(a contrary indicator) Going above .85 puts us into a ready to rally mode. Going below .55 indicates a selloff due. OEX Put/Call Index A measure of Public Attitude as reflected by SP100 options. Over 1 leads to near term rallies A crossing below 1 indicates an increasing chance for a short term pullback. McCLELLAN SUMMATION INDEX: This is a slow to turn indicator because of the moving averages used to compute it. Dropping indicates weakness with numbers below the zero line negative for the market. Conversely a crossing of the zero line in a positive direction leads to positive Markets. NEW!!! MORE DATA WANT TO WATCH THE MARKET REALTIME ALL DAY?.... Click Here-Updated automatically every 60 seconds You can now watch overseas markets on a real time basis before the market open so that traders can watch for these effects at a new 60 second updated Overseas Charts Page Night trading on GLOBEX is available in data form at GLOBEXDATA A new commodities update page is also available from our sister site HERE. 2nd TIMING SECTION available. I have started a series on market timing and the first two sections are available HERE . This little series will be directed at an understanding of my approach to timing stocks, industries, sectors or whole markets. The basics are all pretty much the same. SUBSCRIBER LINK TO STOCKTABLES NOW INCLUDES THE "SPYDR" ISSUES AS WELL AS FOREIGN "WEBS" AND RS RANKINGS ON ALL. YOU CAN ENTER A SYMBOL, (listed at the bottom of the sector report), OR LOOK UNDER THE "FINANCIAL" SECTOR FOR INDEX FUNDS.(ALSO THE NEW QQQ NASDAQ FUND).questions or comments? E-mail us at pbinvestor@gmail.com OPTIONS SERVICE FREE TO OUR PREMIUM STOCK SUBSCRIBERS We will be providing option evaluations on all of our new Long system selections. The hardest part of options trading is determining which option is ideal for your style of trading. Normal Black-Scholes analysis does not work for these selections and is far too complicated for the average investor. We now have an options engine which allows us to evaluate for our criteria and give you the best single option to trade the next day. As an example At Home, (ATHM), has over 340 options to choose from. With our evaluator we sort through that minefield and give you one option that is the BEST and usually a few that are OK. To see a sample of what the pages will look like this weekend go to: http://www.wwfn.com/C_optionsprice.htm for a CALL example We hope to be able to provide this as an interactive page in the future that will allow you to enter your own stock options for evaluation. Please give us any feedback on this new free service so we can improve it for you. SELECTED CHARTS TODAY:(UPDATED LATE EVENING). VIX chart (Volatility Index) http://www.daytradesignals.com You must have a java enabled browser and if you are operating behind a firewall, such as many company internet accounts do, you may not be able to get the service if they have blocked our communications ports. We have included examples available from the links page and I am doing analysis of two more system approaches we have been following and will release them shortly.. Please keep the feedback up on your successes as well...we have really been pleased with your responses and encouragement. CLICK HERE TO ORDER NOW! CLICK HERE TO ORDER NOW!