Tuesday, October 19, 2010

Swing Trades Update

The BULL is in its last leg, ready to FALL.

New Swing Position initiated on the last hour of the Monday Day Session :

 SOLD 1180.25 on a Bearish Engulfing Signal ( 5min ) failure to penetrate 1182. STOP Loss : 1181.25 , moved to 1178
Open profits now : + 8.75 pts per contract.

Tuesday, October 19 Update :

Open profits now : + 22.50 pts   HOME RUN !

Those followers that read the Clue Statement posted on this Blog on Sunday 10-17 knew what was going to happen today Monday.That is exactly what happened


TTT Sell Short day
 MACD Bearish Divergence
 Day after Options Expiration
 Important Market Turning Date
 RSI ( 2 ) Reading :  97
Other : Dollar Index

A solid rise in bank stocks - which were recently beaten down over accusations that foreclosure issues had been handled poorly - catalyzed a modest advance on the broad market (on unimpressive volume of less than one billion shares on the NYSE).

As well, Citigroup posted better -than-expected earnings although revenue came in light. Still, Citigroup stock put in its best single-session percentage gain since April. According to Citigroup, fewer of its customers defaulted on loans, bringing a potential improvement of the bank's balance sheet. Citigroup's strength boosted the KBW Bank Index by three percent (last week, it lost 4.5%). Overall, the financial sector outperformed other S&P 500 sectors, rising 2.3% today.
In economic data, September industrial production was down 0.2% while capacity utilization came in just under 75%. Meanwhile, homebuilders remain pessimistic about the US housing market, s indicated by the National Association of Home Builders' monthly index rising only slightly to a reading of 16. While this is the index's first increase in five months, the index is well below 50, which is the dividing line between positive and negative sentiment. We have to go back to April 2006 to see the last reading above 50

In notable earnings news, IBM, whose stock has been rising relentlessly since early September, reported a 12% rise in net income and raised its profit forecast for the rest of this year. Wall Street tech darling Apple, now the second-most profitable US technology company (after Microsoft) took a hit in after-hours trading today, declining some six percent in spite of strong earnings. Both Apple and IBM thus experienced a sell-the-news reaction to their earnings reports; some market observers feel these two stocks have been 'priced for perfection'; others see the (rare) pullback as buying opportunities.

1 comment:

  1. Excellent call: Great us of a moving ave based indicator, a time cycle and event (opex), rsi to gauge ovb/ovs and the dollar index for correlation.