Pre-market futures are up sharply this morning on a combination of nothing, a lag effect from U.S. and global interest rate cuts, positive earnings, and positive economic reports. It looks like the Bulls are simply following through with their buying interest from two days ago more than anything. Third quarter GDP came out better than expected and Weekly Jobless Claims reported close to in-line. Both reports will strengthen the Bullish underbelly of the buying interest this morning. The market is set to gap up and the Dow will probably attempt to reach for the 9,300 area again.
The big ups on the pre-market futures this morning and the big rally on Monday is really, really, really starting to beg the question "who exactly keeps selling the market hard in the last 10 minutes of the day?" And "how is it that they happen to coincidentally sell the market just above resistance levels and ruin technical breakouts each time?" It may all be nothing.....but.....once is interesting, twice is a little fishy, and three times in four trading days.....well.....
As it is, it means that we all have to watch the market closely in the last 30 minutes for any potential repeats. Is this market manipulation or real selling? I don't know, but I have to be ready for the pattern to possibly repeat itself, probably until the middle of next week. So I will probably dump any call positions 30 minutes before the close no matter how strong it looks. I don't necessarily want to dump the calls like that, but I don't want to get caught in any of these "October Surprises."
Refer to the chart of the Dow I posted yesterday to see potential support and resistance areas. The Dow stocks (Mega Caps) and also the SPX (Large Caps) are the best performing indexes right now. We'll see if the market (the Dow) breaks above 9,300 and heads towards 9,800 - 10,000, or if we get more of a stalling out short term in the 9,200 - 9,300 area. I suspect that Big Money won't necessarily want to make any huge moves ahead of the elections, however, a Dow move towards 10,000 is still reasonably possible ahead of next week.
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Thanks Dwight.
ReplyDeleteYou are a welcome beacon of lighthouse guidance and encouragement as we navigate these stormy waters.
Good sailing all as we skirt past the rocks!
Francis
Watching AMGN for a pullback.
USDX has dropped significantly from highs of 87.... might also be propped up from falling precipitously here.
Sold my RGLD Call $25 for $240 profit... a little early perhaps but I just wanted to feel a Victory and have something to feel joyous about. Been a little too serious lately and need to be lighthearted in my thinking overall which of course affects trading mentality.
ReplyDeleteWishing you all Joyous Profits!
Francis
Congratulations are in order, Francis! Nicely done. Joyous profits right back at you!
ReplyDeleteThanks muchly Laurie,
ReplyDeleteI really appreciate you and all in the Ladies Team here.... Margo, Claudia and everyone.
Can't recall who it was that bought a GLD call recently; just hoping you are profiting.
SPY support around 95 seems to be holding after moring intraday bounce.
Francis
Way to go Francis!! Great planning and results are Joyous Profits!!
ReplyDeleteGot in SPY dec $96 call this AM-got my nose to the ground like a hound dog!!
Happy trading to all
Margo
Great trade Francis. By the way, what what you to get into that trade?
ReplyDeleteJoe
Well I am holding on to my SPY call. I got in and out of a SPY put and made +6%. Still holdin' on to the call-I will be out before end of day if market decides to go to Florida(south).
ReplyDeleteMargo
PS Am trying to listen to Dwight on last night's open house as well.
Hi Joe, 4 days ago at around $23 I figured:
ReplyDelete- Bollinger bands were overstretched and due for a snap back to the mean;
- big spinning top candle at this 3 year low area;
- gold bullion had bounced off significantly from $680.
So I determined it was worth a quick few days trade with a target to $30 resistance area though as you saw, I exited early this morning but it has since rolled over.
HOpe this helps. tell us about your successes!
Francis
Know when to hold 'em and learn how to let 'em go! Wasn't that our VC lesson yesterday? Had a +6% and left with a -3% for the day-could have been worse.
ReplyDeleteGotta love it and live with it and move on!!
Can't wait for VC tonight!
Margo
great job Margo!
ReplyDeleteYou're keeping losses small and your Wins are getting Bigger all the time!
Francis
Man, I cannot catch a break! Everytime I seem to get in the market sells off seconds later and I either can't get out soon enough or I get out and then the market rallies! Entered a DIA call right around 1:30 and then got out when it started selling heavily with a 7% loss. And I'm outta day trades until tomorrow!!
ReplyDeleteIt is what it is, I'm takin tomorrow off from real money and getting back in Monday..
Joe
Hey Gang,
ReplyDeleteMissed VC tonight because I was carving pumpkins for the kids. Did anyone ask about FDX? I bought Nov 60 puts on it this morning and was wondering what Dwight's sentiment on the market is.
Thanks,
Gary
Gary,
ReplyDeleteNo one asked about FDX specifically, and I didn't jot down the puts, but DD was mentioned.
Dwight commented on and drew a pennant for the last two days within an NR-7 range on the Dow 20da/60" chart. He drew confirmation lines above and below the pennant indicating breakouts beyond these ranges; 9375-9400, bullish & 8950-8975, bearish warning,respectively. He mentioned the 9425 line will bear watching for the last 15 min of trading.
WLL, DO, and CNI were shown as examples of stocks with triple bottoms for possible paper calls . APOL has a reverse H&S. Others discussed were BNI, NSC, ZMH, HES, ESV, OXY, CNQ, ECA, NUE. NBL has a rising wedge.
I'm going out of town Fri. night, so I'll miss tomorrow's VC.
Profitable paper trading everybody!
Anybody notice these funky almost word verifications for the comments?
Laurie,
ReplyDeleteThanks for the update!
Gary
You're a Doll Laurie!
ReplyDeleteThanks for the update.
I really like DO as well; big move up today so would wait for the pullback since oil is also taking a rest but probably not for long.
Also watching AMGN like a hawk especially after today's spinning top. A pullback to $56 area would be a good support entry point if it bounces from there.
All the best to everyone.
Francis
Sorry fellow traders,
ReplyDeleteI mistyped last night. The ranges Dwight mentioned for the Dow were breakouts within those ranges, not beyond them. It was late...
Laurie,
ReplyDeleteAfter reading your correction I looked at the pennant. Was Dwight saying 8875-8850 for bearish?