Top Takes From RealMoney

There is one clear advantage of stocks over gold. Most stocks pay dividends, and gold doesn't. Put another way, Dow stocks as a group are glorified TIPS (Treasury inflation protection securities). But with the interest rate on TIPS approximating zero, gold is at least competitive with TIPS these days.

4. Morning Trade

Bob Byrne
4/2/2009 9:27 AM EDT

Many more weeks like this (gap down, gap up, gap down, gap up), and I am going trade the overnight session and sleep during the day! Once the emini broke through yesterday's 791.50 level, that persistent bid came in and propped the market up and forced traders to buy each (shallow) dip. I have no clue whether the FASB decision warrants a 2% gap higher ... but I suspect that bid will remain under this market as long as we hold the 817 area.

Initial resistance this morning is 826.75 ... if the bulls can push the emini through this area they can target moderate resistance at 829 and strong resistance at 833. Be aware that almost every trader I know is watching the 833 area, so buy stops (to cover any shorts) may be placed just above this level. Spiky action is very possible at 833, but a sustained trade above this area opens the door for the bulls to really run this market. Moderate resistance comes in at 845, and strong resistance is at 855.

Until this market has a sustained trade above 833, I consider it to be stuck ... though the bulls clearly have the advantage. A break below initial support at 820 sends us to strong support at 817. If the bulls are going to make a run for 833, I expect them to defend the 817 area. The bears do not take control under 817, but that persistent bid should diminish a bit. Moderate support comes in at 812.50 and strong support at 808. A break of 808, and I expect the bears to become a bit more aggressive.