Short from 1126

Swing Position : SHORT

Now trading at 1119 + 7 points

SELL Signal worked like a champ, see previous post.

Although trading started on a bullish note today, a 'lack of leadership' was seen as the reason the indexes faltered later in the session. The rising US dollar (which gained 0.2% against a basket of key currencies) was also cited as a reason. The market was very quiet. For instance, the Dow's intraday range spanned a mere 36 points today, the narrowest range seen in almost three years!

The release of economic data appeared to have little impact on the direction of the major indexes today. On the housing front, October's data on the S&P/Case-Shiller Home Price Index came in close to consensus (actual value: 146.6; consensus estimate: 147.0). Meanwhile, the so-called Composite 20-City Home Price Index was down 7.3% in October (year-over-year), also close to the anticipated value (consensus: a 7.2% decline year-over-year). On a positive note, that value represented the slowest rate of decline seen in two years.

No surprises surfaced in regard to the latest reading on consumer confidence either. The index that tracks consumer confidence produced a reading of 52.9 (consensus estimate: 53.0). Although the current readings are well above their historic low of 25.3 seen in February 2009, consumer confidence values remain still well below levels that would signal a robust economy (a reading of 90 or higher would be required).