Shore Capital Management LLC

The equity markets have had a great ride for the last three months. So the question everyone keeps asking; have the equities moved too far too fast?  In March it was easy to find cheap stocks, but now many portfolio managers are finding good deals more and more difficult to obtain. As more data is released each week, the evidence is mounting that we are stabilizing, but we are still in a recession. If the recent increase in interest rates hold, could that slowdown the real estate purchases and refinancing and choke the stabilizing economy?

Basis the June contract, we believe the DJ futures contract may still reach 9,000 in the near future. However, once it does, the market may not sustain itself and finally correct, if the correction doesn't happen first.

Our first support level is the lows from 6/5/09 around 8700. If this support level is broken, the next leg off support is 8665 to 8600. The resistance is 8910, thus testing the highs from 6/5/09. If the market goes higher, the next level of resistance is 8960 to 8990.