Daily Commentary
Running Into Resistance
Published: Thursday, October 06, 2011

The major indices booked another round of strong gains yesterday and have now climbed a stunning 6% since the last hour on Tuesday. The Ts indicators closed at 0.08 and 0.47 and we closed in a Down/Down neutral position. It is interesting that despite the gains of the past two sessions, the first Ts indicator was only able to move from 0.06 to 0.08, which means that there are still 12x as many sto ...
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Daily Commentary
Sell Further Strength
Published: Wednesday, October 05, 2011

The major indices reversed early losses to close sharply higher for the session, after a truly impressive last hour run for glory. The S&P 500 (1123.95) and Nasdaq (2404.87) gained more than 4% during the last hour fireworks. As much as the strength appeared to signal a Reversal in keeping with a new low, we would caution against taking too much away from the end of session rally. We were very ov ...
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Daily Commentary
Breakdown Suggests Move To 1040
Published: Tuesday, October 04, 2011

The major indices closed sharply lower at new 52 week lows yesterday, breaking pivotal support in the process. When we last updated this column we said that whatever happened, we needed to sell rallies, especially into the down sloping 50 day averages. The sell set up on Tuesday could not have been more perfect in this respect. We then said to go long on a moderate basis should we see yet another ...
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Daily Commentary
Resilient
Published: Tuesday, September 27, 2011

The major indices soared to their largest gains in more than two weeks yesterday as renewed hopes of a concerted effort to stabilize Europe’s flagging financial system took hold. The S&P 500 (1162.95) will meet significant resistance at the 10/20 day convergence at 1179/1182. Above this the sharply down sloping 50 day moving average will once gain provide strong resistance, and is at 1208 today. T ...
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Daily Commentary
Clinging to last support........as potential new leg lower looms
Published: Friday, September 23, 2011

The major indices closed significantly lower for the second consecutive session yesterday. As we had said earlier in the week, the “symmetry” was now in place for a spike lower and we have certainly seen that play out. The fact that the Volatility Index (VIX – 41.35) had tested its up sloping 50 day moving average at the same time that the S&P 500 (1129.56) had tested its down sloping 50 day movin ...
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Daily Commentary
Declining Breadth
Published: Wednesday, September 21, 2011

The major indices sold off into the close yesterday to close mainly lower on the session. The mean stock has lost 1.67% this week as rally participation narrows. Often declining breadth as a few notable stocks like Apple (AAPL – 413.45) move higher in a perpendicular fashion, is an early sign that the market maybe putting in an intermediate top. The Nasdaq (2590.24) came within 17 points of what w ...
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