Tuesday was one of the most interesting days in a long while. We entered the day severely oversold on some secondary measures so for short term traders there was an opportunity for a trade IF the market opened down. That happened as some massive interest rate hikes in Russia overnight caused consternation. The trade to buy the weak market was there but you truly had to be quick today. We’ll talk more in detail on the intraday action in a moment but for the day the S&P 500 ended down 0.85% and the NASDAQ 1.24%. Tomorrow the Fed will release their meeting statement, with the central bank gathering to consider the timing and size of interest-rate hikes and whether to reiterate its vow to maintain rates low for a considerable period.Continue reading
SPECIAL NOTE FROM BLAIN – Thanks to everyone who tuned in yesterday for the market recap live, the archived broadcast has been watched over 350 times since it aired, thank you!
Tonight I am streaming live on my channel from 9:30 PM – 11:00 PM EST and have a BIG announcement to make regarding StockTradingToGo. Tune in live to hear the big news before everyone else! We are going to do chart flipping thereafter, goal is 200 charts tonight!
Indexes bounced back from yesterday’s sharp losses but momentum waned in the afternoon as some selling pressure pushed stocks well off their highs. The S&P 500 gained 0.45% and the NASDAQ 0.52%. It is nearing the end of the year so our nearly annual Washington D.C. hijinks are back with us as moves to block a spending bill caused some fear of a government shutdown. We saw a much bigger standoff a few years ago at the end of the year if you recall. On the positive side, the Commerce Department had retail sales rising 0.7% last month, the largest increase in eight months. Lower gas prices certainly help!Continue reading
Indexes rallied on good economic data but some late day selling took stocks well off their highs. The S&P 500 gained 0.17% and the NASDAQ 0.24%. Remember, we are in a perverse kind of market where people want good news but not “too good of news” to make the Federal Reserve remove their massive monetary support.Continue reading
Indexes dipped at the open once again but stabilized as the day went by on jawboning from the Fed. That said, it was more of less selling than a lot of buying pressure. The S&P 500 gained 0.01% and the NASDAQ 0.05%. A Federal Reserve official said the central bank should consider delaying the end of stimulus plans, which as usual made traders happy. In economic news, U.S. industrial production rose 1.0% in September, versus expectations of 0.4%.Continue reading
Indexes opened flat Thursday but sold off quite sharply in the morning before deeply oversold conditions led to a decent bounce to finish back near the unchanged line. The S&P 500 was fractionally higher while the NASDAQ gained 0.18%. We will have the monthly employment data premarket tomorrow so that should sway tomorrow’s mood. Some of the morning selling could be attributed to EuropeContinue reading
Another gap up to start Tuesday as bulls have taken back control of the markets. After the initial surge at the open most of the rest of the day was quite quiet actually. The Commerce Department reported beginning home construction rose 15.7 percent last month from June, while starts for volatile multi-family homes jumped 33 percent.Continue reading
In yesterday’s recap when describing the late day selloff we wrote:
All the typical knee jerk reactions took place – U.S. Treasuries were bid up, oil and gold spiked, as did volatility etc. How much of this is real humans trading and how much is just computers trading with each other we will soon see.
One must keep in mind how computerized the market has become. When a news event hits a lot of the automatic trading goes into overdrive and there is little one can take from it most of the time. It becomes a market on autopilot. Of course if it is followed by more bad news than humans generally will pile on in the days following but as we saw today when all these knee jerk reactions happen so quickly, often we see a quick reversal soon after. Considering the market was very short term oversold per the NYSE McClellan Oscillator – we also had that on the bulls side for at least a quick short term bounce.Continue reading
Indexes were in a light pullback mode until news hit of the Malaysian Airlines crash, which accelerated selling significantly. At the end of the day the S&P 500 fell 1.18% and the NASDAQ 1.41%. This was the biggest one day drop for the S&P 500 since early April, as most of the pullbacks this spring came in the NASDAQ not the S&P 500 or Dow Jones. All the typical knee jerk reactions took place – U.S. Treasuries were bid up, oil and gold spiked, as did volatility etc. How much of this is real humans trading and how much is just computers trading with each other we will soon see.Continue reading