London Subways Falling Down

Today was an unusual day due to the terrorist activity in London. Markets around the world initially reacted negatively, some very negatively, but here in the US the Dow managed a positive close. A day like today is one of those days when you look at the financial markets with a bit of a question mark. We abhor the violence inflicted today on innocent people but don't think it should affect trading as much as it appeared to have done. A market trader, like I have been, tends to say how can I make money today and sees an opportunity in a weak open. How many of you were thinking bullish thoughts as the markets opened this morning? We have often times talked about weak openings or strong openings as good times for a reversal due to the nature of those early morning trades, someone is obviously Reacting to news.

Our position remains that the big news of the week is tomorrow morning with the jobs reports and then we will see what the market wants to do. Tomorrow will be the official end of the bullish period we usually see around the end of the quarter or month. We do have earnings season upon us as well so there are several things out there to hold the market's attention.

We expect the market to continue its recent drop in spite of the relative strength today. The market has told us it wants to go down based on the ever lower highs it has been putting in this year. Today, don't forget that we had another new Low for the move and we are a ways from breaking the June highs. Rationalize all you want to, but make no mistake, until the market pushes above the June highs there can be no bullishness from the Wednesday Update.

To answer the blog comment, I have seen that AIG has gone up to around 60. Do you think it can go much higher than that???

Dow Industrials: 10302.29 +31.61
BGEIX: 11.15

Thanks to all of you who remembered my birthday today, much appreciated. And, yes, I have posted another picture on the blog just below. I don't know if you can see it or not, I can not see it at work but I do see it here at home so maybe you can too. Have a great weekend.