pretty open watch it drop, page-18

White knuckle time #2
September 30th, 2008

Brooksie’s Market blog
Tuesday, September 30, 2008 9:24am EDT

DJIA: 10,365.45
S&P 500: 1106.42
Nasdaq Comp.: 1983.73
Russell 2000: 657.72

Expect: A gap opening today with the potential for a gain of up to 195 to 295 points during the day. I doubt it will hold though. It will be a tough one to play, even for traders, due to the fact many stocks will open at prices much higher than yesterday’s near-panic close, as investors anticipate a compromise deal on the $770bn rescue plan by Thursday. Once passed, I expect focus to turn to a horrible economy and for a drop in the DJIA to at least 9800. No passage this week spells 9800 this week, or during early trading Monday.

Volatility will continue to rule, in face of fear on the one hand, and reassuring statements coming out of Washington on the other hand. Judging from the market’s reaction to the House’s failure to vote for the rescue plan, I was not the only one to be surprised. I would rather have been wrong about the vote, than the advice I gave.

Due to the Jewish Holiday, Rosh Hashanah, no vote will be taken on the $770bn rescue plan today and maybe not until Thursday.

All along, I have targeted October as the first of two bottoms for this bear market and with the DJIA dropping to 9800. That number is not cast in bronze, and in light of the mounting seriousness of our nation’s economic problems, I have considered lowering it to 7900-8200.
http://blog.equitiesmagazine.com/