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Wk8: Market Recap

While the media focuses on the Dow, a more accurate gauge of market action is the S/P due to the fact that it is a barometer which contains 500 stocks versus the 30 in the Dow. We have to remember that the market prices in the emotions of traders and investors because it is in essence a balance of greed and fear. Gold continued its bull run touching $1000 an ounce on the London board. Any pullback into the 90…

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Wk9: Market Forecast

Get out your long playbook. When everyone thinks sell, it’s time to buy!The market prices in the FUTURE speculation of the economy so we believe that any sign of a positive 2010 or 2011 will produce a huge rally over the months to come. In the week ahead make note of these important economic announcements.· Thurs: Durable Goods 8:30 ET· Fri: GDP 8:30 ET We also have Consumer Confidence on Tuesday, Existing Home Sales Wednesday, New Home Sales Thursday, and…

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Wk9: Stocks to Watch

All of them. Especially the strong ones. Here are a few that stand out… Long: ALXN, AMZN, CHE, GILD, HANS, IPI, MOS, NITE, POT, SLGN Short: FE, KR, MMS, PLCE If we get a rally, you can expect the weakest sectors, financials, materials, and transports to get the biggest lift. Whereas the current leaders, healthcare, telecom, and utilities may not see as large of a rally at these levels.

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Black Friday 2?

Taking a look at the S/P and Dow, we are at, and coming into a major support level. The Dow, closing at the lowest level since 1997, has the potential to break down into “open space” meaning the next support level is not clear. The S/P is not far behind, just off it’s November 08 lows which coincide with the lows of 2002/03. If we see a break of the S/P 740 or the Dow 7450 we could be in…

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Gaps, the EUR/USD, and DOW Correlation

With recent US and global economic new heavily influencing the market, we have seen morning gaps off the open. One indication on which way these gaps will play out is to look at the EUR/USD, as it trades 24-hrs a day.We recently saw a triangle breakdown in the EUR/USD. Measuring the high/low points of the EUR/USD triangle we get a target of 1.22. The Dow is sitting right at its support level of 7500 and any break lower may induce…

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First 15-Min. Rule

One of our rules we use is to NEVER trade the first 15-minutes of the market. This is because many times noise and false moves take place in this time. For open positions, if a stock gaps down below the established stop, wait for the first 15-min bar to fully form, and then place a stop underneath the low of that bar. More often than not the stock will gap below your hard stop then rally in the first 15…

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Wk7: Market Recap

In week 7 we saw more sideways action with candles lining up same sized bodies on the weekly chart of the S/P. Once again the mixed internals confirm this. Gold is moving once again so keep that on your radar in weeks to come.The VIX is still in its triangle formation on the dailies, holding in the 40s. Oil continues to decline, ranging in the mid to upper 30s. It’s the speeches given by political and corporate officials have had…

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Wk8: Market Forecast

OPTIONS EXPIRY WEEK! In the week ahead make note of these important economic announcements.· Weds: Housing Starts 8:30 ET· Thurs: Industrial Production 9:15 ET· Thurs: Producer Price Index 8:30 ET· Thurs: Jobless Claims 8:30 ET· Fri: Consumer Price Index 8:30 ET If you look at the Dow versus the NASDAQ, you can see the divergence in strength. The NASDAQ is showing to be the strongest out of all the indices, putting in higher highs and higher lows, while the Dow…

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