An 80 point pre-market drop for BIDU set the tone for the trading day today as investors continued to digest a mixed bag of economic and earnings data. Positive housing numbers were overshadowed by downbeat consumer confidence data that brought volatility back into the equities markets. The Dow zigzagged again today, frustrating many traders. The mid term trends of the major indices converted to red today, showing continued signs of weakness for stocks. The long term trends are all converging now. A few more negative trading sessions and we could see a full shift in trends for the major U.S. equities markets. The Dow Jones Industrial Average ended the day up 14.21 points, to close at 9,882.17. The S&P 500 lost 3.54 points, to close at 1063.41. The NASDAQ finished the day down 25.76 points to close at 2116.09.
The Wizetrade Alerts equities chat room saw profits coming from BIDU, SGMS, HTZ, CE & AIG, just to name a few stocks! Notable trades included a move of over $1.00 or more than 7% on SGMS and a $0.51 or nearly 2% move on CE. To get involved in the alerts, go to: www.wizetradealerts.com
Kipp
I not saying that I am the reason this stock sold off but I did say I didn’t like it no matter how good the charts looked. Check out NXTH today, I found this running my 5 and Dime scan this morning. The stock was green across the board and up about $.08 at the time we looked at this stock. I then go to lunch and when I get back I pull NXTH up just to see where it’s trading at, and to my surprise the stock is down $1.77….over 50% drop since I left for lunch…WHAT JUST HAPPENED??? It wasn’t me, I didn’t do it. I have looked high and low for news on this stock and can’t find anything. So I sit here and scratch my head thinking to myself, did I cause this crash? Is this my fault? I would love to think I had that kind of pull or that many people listen to me, but to be honest I don’t know what caused this stock to fall on this day. But it was fun watching it and I did do a fill the gap play for a quick $300.00 on a paper trade. I wouldn’t have touched that stock with real cash. But it has moved about $.30 off the bottom already.
Will we break above 11,000 or sell off from here?
This market keeps bumping it head on this ceiling and can’t seem to break out above the recent highs. Is this just consolidation before the next push higher? Or is this top going to hold and the market is going to say, “Hey, nice run we’ve had. Now its time to sell off.” We just had a discussion on the market rallying into the afternoon and I said I don’t really feel it; I’m thinking a late afternoon sell off. When Harris and I were talking about this Dow was only down 73 points, right now we are down 113 with an hour and a half left to go in the session. 116 now…. What I am seeing right now in the Dow is that we are breaking support of 9900 for the first time in the last 7 trading sessions, so this could start to get ugly. I hope everyone has stops in place; it may be time to lock in some of those profits.
Is it me or does it feel like equities traders are in a
battle over Dow 10,000? After yesterdays end of the day sell-off
and the follow-through this morning, it was starting to look like the bears were
going to win. Not so fast!! The bulls fought back
with a vengeance with the Dow rallying back over 180 points from the lows of
this morning to the afternoon highs, closing about 25 points from the high of
the day. The Dow Jones Industrial Average ended the day up 131.95 points, to
close at 10,081.31. The S&P 500 gained 11.51 points, to close at 1092.91.
The NASDAQ finished the day up 14.56 points to close at 2165.29.
With positive earnings for AMZN, COF and AXP after hours
today, we might see a continuation move tomorrow for equities.
So far earning has been good this quarter, helping push the DIA (Diamonds Tr.) through 10,000 the last 5 days and closing above 10,000 for 4 of those 5 days. With the bleak outlook about the economy and the continual loss of jobs this market is holding its own. People continue to ask, “Why is the market rallying when everything seems so bad in the country?” I tell them the same thing I always do; the market will do what the market does. What I mean by that is….you don’t really need to know the reason why, you just need to trade what you see in the charts. Have you ever heard the saying “Can’t see the forest through the trees.”? Sometimes we don’t see what’s right in front of us because we don’t understand it or are too scared to react because of outside factors. The only way I know to take the fear out of the market or out of trading the market is to have a solid trading plan before you enter any trade. That way the trade works out the way you planned it, win, lose or draw…
I was sitting here thinking what I was going to write about today, because you know how much I love to write. So I had USO on my screen and it’s green across the board up $ .87. What’s this I ask myself? Oil was as low as $68.05 this morning and now we are trading at over $70.00 a barrel. So immediately I went to the news to see what’s fueling this fire. It looks like “upbeat economic data boosted sentiment in energy trading.” What the heck, didn’t non farm come in worse than expected on Friday?
Here is the news from the Institute of Supply Management:
The five industries reporting growth in September based on the NMI composite index — listed in order — are: Utilities; Health Care & Social Assistance; Retail Trade; Construction; and Wholesale Trade. The 13 industries reporting contraction in September — listed in order — are: Arts, Entertainment & Recreation; Agriculture, Forestry, Fishing & Hunting; Accommodation & Food Services; Mining; Public Administration; Other Services; Real Estate, Rental & Leasing; Professional, Scientific & Technical Services; Information; Management of Companies & Support Services; Finance & Insurance; Educational Services; and Transportation & Warehousing.
Respondents are giving mixed feelings on the news saying, “Sales are very steady and risen some each month in the past six months. The bottom is now here.” (Construction) “Inconsistent….just when things seem to be settling a bit, a new set of pressures develops.”(Retail Trade)
Does anybody know what’s going on here? ANYBODY????
The Dow broke support at 9600 and tested levels set back on September 14th. The low on the Dow that day was 9535.96 and the Dow’s low so far today has been 9532.96 with about 45 minutes left before the close. Lots of news and numbers come out tomorrow with non farm leading the pack. This could push the Dow back up off of support or it could get real ugly, really quick. If we blow through 9500 the next support is around 9200 on the weekly chart of $DJI. The voices around me are calling for 7500 by the end of the year. Could this be true? Can it happen again?
Anything could happen as we have seen in the past. Like I said earlier, we have non farm tomorrow morning and earnings season starts up again next Wednesday with Alcoa Inc. (AA) kicking it off. All this news could push the market higher and this Bull Run could continue or we could see the market sell off and break down. The charts are telling us the market is indecisive and its looking for a reason to break one direction or the other. I know that I have said news is noise in the past, and I continue to believe this, but keep you ears on the news and your eyes on the charts over the next week. I think the market will tell us which direction it’s going to take us going into the end of the year.
