We don’t have much to say this evening as the market wants to continue on this upward course. The tech sector certainly shined today, at least other than the sink holes that existed in the sector. INTC made a good run today and provided some support to the indexes that it is in, this after DELL’s news yesterday.
We have known about this end of month, start of month, strength in the market and I guess we should have covered some of our shorts in anticipation of this move. The evidence is that the market is bumping up against resistance here. The Dow Industrials was the weakest index on the day due to its close proximity to a lot of overhead supply. The broader indexes were up quite a bit more due to their distance from the resistance above. We continue to think the market will top out below the highs of the last few months and head down into the end of the month.
We have some big news items the next two days, including the ISM non-manufacturing index tomorrow and the October jobs report on Friday. The market seems to think the October lows will be the place to spring board from and so far that is what has happened. The market has shrugged off the interest rate increase and now will face shrugging off the jobs report on Friday. It can do that but the over head supply is still there waiting to be sold to the highest bidders.
I guess we just have to wait until Friday to see what is going to happen. The run up today was on heavy volume and seems to be using itself up, at least towards the end of the day. We can only suppose that there will be fearless buyers going into Friday’s report. We are in the no news period for earnings and the market can get a little braver during this period and seems to have done that.
Dow Industrials: 10,472.73 +65.96
RYVNX: 20.78 (still above our entry point)
TLT: 88.86 (ouch)
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