Top Line: The stock market traded pretty flat after an up opening. The main event was dullness. The market still seems to be putting in a top of some kind.
The Columbus Day holiday was a dull event and there really wasn't much new information that we saw. The market opened strong and the various indexes traded back to or near last month's highs. If the market wants to go higher, it will. We still think that the market has stretched itself too far already but with no impetus to go down, we need to wait for confirmation that it actually wants to go down.
As we sit here and wait for the market to make up its mind, time is passing with no meaningful moves. For the past month, we have traded in a pretty tight range (about 5%). The moves we have seen have not been easily traded so we have been patiently waiting.
The TLT has had a rough few days but it should be just a minor setback. The move coincides with a similar but opposite move in stocks so now we need to figure out if either is real. The only way we can do that is to wait for the market to tell us. The odds favor that the market needs to make a move down.
GDX and gold were continuing their dance with gold moving ahead of GDX as we mentioned a few days ago. This is not a good sign if you are looking for a confirmed higher move. It is possible that gold is heading to $1100 as we expect but even if it doesn't there should be a rapid move back down probably dropping back into the triple digits. Since GDX is not really confirming gold's move, we expect that GDX will move down below 40. We will try to buy some more down there.
As we move through the month of October, there should be some downside. This could be a swift move but we expect there to be a reason for it. Earnings could be the cause, whether they aren't good enough or are actually bad. The only real thing that matters is how the market deals with whatever news there is. We wait some more...
Subscribe to:
Post Comments (Atom)
5 comments:
I have a web site where I give advise on penny stocks and stocks under five dollars. I have many many years of experience with these type of stocks. If their is anyone that is interested in these type of stocks you can check out my web site by just clicking my name. I would like to take a moment to talk about low price stocks not classic penny stocks or stocks under one dollar the term most people most often think of when the word penny stock is used. Their are companies of really decent quality trading under five dollars’ but for every one company trading under five dollars that is of decent quality their are maybe ten of poor quality. So the really big difference between those investors that are tremendously successfull when it comes to investing in low price stocks and those investors that lose enormous amounts of money investing in stocks under five dollars’ is having a great deal of knowledge and experience when it comes to low price stocks’ or having a total lack of knowledge and experience when it comes to low price stocks. Finding quality stocks under five dollars requires a lot more research than finding a decent stock above ten dollars.
Thankyou
The given information is very effective
I'll be updated with it
Application Development
First of all let me tell you, you have got a great blog. I am interested in looking for more of such topics and would like to have further information. Hope to see the next blog soon.
Thanks for sharing such a wonderful knowledge. Your information is very good. it is very important to everyone,
your post is good and full of information; I would like to thank you for sharing such a usable and wonderful information with us.
Post a Comment